Motherboard HSN Code

Understanding the Motherboard HSN Code

The motherboard is the unsung hero of any electronic device, from a personal computer to industrial machinery. It acts as the central nervous system, connecting all components and enabling them to communicate. For businesses involved in the manufacturing, import, export, or sale of motherboards in India, correctly identifying their Harmonized System of Nomenclature (HSN) code is crucial for accurate Goods and Services Tax (GST) compliance. Fortunately, the HSN system provides a clear classification for this vital component.

The Motherboard: HSN Chapter 84

Motherboards are categorized under HSN Chapter 84, which broadly covers “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.” Within this chapter, motherboards are specifically recognized as parts and accessories for automatic data processing machines.

The key to identifying the motherboard’s HSN code lies in its function as a part of a “machine of heading 8471.” Heading 8471 generally refers to “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included.” This includes computers, laptops, and similar devices.

Therefore, motherboards fall under:

• HSN 84733020: This specific HSN code designates “Parts And Accessories (Other Than Covers, Carrying Cases And The Like) Suitable For Use Solely Or Principally With Machines Of Headings 8469 To 8472 – Parts And Accessories Of The Machines Of Heading 8471: Motherboards.”

This detailed description leaves no ambiguity regarding the classification of motherboards.

Consistent GST Rate: Motherboards, classified under HSN 84733020, consistently attract an 18% GST rate. This rate has been effective since July 1, 2017. This consistency simplifies taxation for businesses dealing with these critical components.

Why Accurate HSN Codes for Motherboards Matter

• Ensuring GST Compliance: Using the correct HSN code is fundamental for businesses to accurately calculate, collect, and remit GST, thereby avoiding potential penalties and legal complications.
• Facilitating Trade: The globally standardized nature of HSN codes simplifies both domestic and international trade, making it straightforward to classify and transport motherboards across borders.
• Streamlining Business Operations: Precise HSN classification significantly aids in efficient inventory management, accurate invoicing, and simpler tax filing procedures for businesses dealing with motherboards.