After the advent of GST in 2017, filing taxes has become a seamless process. However, the GST Rate for computers (18%) is higher than the VAT rate (14-15%). The GST rate is changed periodically on the basis of recommendations by the GST council. After an increase in indirect tax revenue, the government has been considering lowering the rates to make India more digital.
The GST council members analyze the GST rates frequently for better taxation management. With their approval, the GST rates are set whilst keeping in mind the economic situation and proposals submitted in the meeting. HSN code is related to all GST rates. The determination of the HSN code makes it easier to calculate the GST rate.
Impact of GST on Laptops and Computers
Laptops, computers, desktops, and PCs were taxed at 14-15% before the introduction of GST. Now, the GST tax rate applied on Laptops and Computers is 18%. Make arrangements to spend more money if you plan to buy any of these electronics.
With technological advancements, laptops were available at a considerably affordable price. After GST implementation, laptops and computer prices have spiked. The tax rate for extended equipment such as hard drives, pen drives, etc. has also increased.
GST effects on Laptops
Here is a side-by-side comparison of prices of laptops and desktops before and after the implementation of GST:
|Laptop/Computer Model Name||Price before GST||Price after GST|
|Dell Inspiron 5000||Rs.38,000||Rs.39,520 approximately|
|Toshiba Satellite||Rs.70,000||Rs. 72,800 approximately|
|Sony VAIO||Rs.29,990||Rs. 31,189 approximately|
|Acer Aspire||Rs. 36,099||Rs. 37,542 approximately|
|HCL 32inches Laptop||Rs.40,019||Rs.41,619 approximately|
|HP Pavilion||Rs. 47,489||Rs. 49,388 approximately|
There was also an increase in the GST rate for other laptop equipment as follows:
|Type of Equipment||GST Rate (current)|
|External Hard Drive||18%|
|LED/LCD desktop monitors larger than 32 inches||18%|
|LED/LCD desktop monitor less than 32 inches||28%|
When is a GST Penalty Applicable?
The GST law passed in 2017 mentions offenses and penalties levied in case of late filing, no filing, tax fraud, etc. You can use a GST penalty calculator to find out what the fine applicable will be. When a taxpayer does not file GST returns within the given timeframe, a small fee is required to be paid.
|Particulars||Normal Return Filer||No Return Filer|
|CGST Act||Rs. 25||Rs. 10|
|SGST/UTGST Act||Rs. 25||Rs. 10|
|IGST Act||Rs. 50||Rs. 20|
The implementation of GST in 2017 has proven to give rise to a few obstacles in the Digital India campaign but the government is working hard to make sure that the campaign continues to run smoothly.