Refurbished Laptop HSN Code

Understanding The HSN Code for Refurbished Laptops

The market for refurbished laptops is booming, offering a sustainable and cost-effective alternative to brand-new devices. These laptops undergo rigorous testing, repair, and restoration to bring them back to near-new condition. For businesses dealing with refurbished laptops in India, understanding the correct Harmonized System of Nomenclature (HSN) code and associated GST rates is critical for smooth operations and tax compliance.

When it comes to refurbished laptops, they generally fall under the same HSN codes as new laptops, as the refurbishment process typically restores their original function and nature. The primary HSN classification for laptops, whether new or refurbished, is found under Chapter 84: “Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof.”

More specifically, laptops are categorized under HSN 8471: “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included.”

Within this heading, the most relevant HSN codes for refurbished laptops are:

• HSN 84713010: This code is specifically for “Portable Automatic Data Processing Machines weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display,” often used for “REFURBISHED COMPUTERS & COMPUTER PERIPHERALS, REFURBISHED LAPTOP.” This is a widely accepted code for refurbished laptops.
• HSN 84713090: This is a broader “Other” category within the same heading for portable automatic data processing machines and can also apply to refurbished laptops, especially if they have specific features or are part of a particular model series not explicitly covered by 84713010.

Both these HSN codes, 84713010 and 84713090, typically attract an 18% GST rate in India.

It is crucial to remember that while the HSN code for refurbished laptops is generally the same as new ones, the GST valuation might differ for second-hand goods under the “Margin Scheme.” Under this scheme, GST is levied only on the profit margin (selling price minus purchase price) if no Input Tax Credit (ITC) was availed on the purchase of the goods. This can make refurbished products more affordable by reducing the overall tax burden.

Therefore, whether you’re buying or selling, ensuring the correct HSN classification and understanding the GST implications for refurbished goods is key to navigating the market effectively.