GST and IT Hardware: Input Tax Credit Essentials for B2B Buyers

The Basics

IT hardware (networking, servers, storage, UPS, cables, accessories) falls under HSN 8471, 8517, 8504, and related codes — all taxed at 18% GST. For any GST-registered business buying for business use, the full 18% is claimable as Input Tax Credit.

What Counts As 'Business Use'

• Servers, switches, firewalls at your office or DC — yes
• Laptops and workstations issued to employees — yes
• Networking gear at employee home offices — yes (if employer-owned, WFH policy documented)
• Hardware gifted to customers — no (blocked credit u/s 17(5))

Invoice Must-Haves

1. Your GSTIN printed correctly on the invoice
2. Valid supplier GSTIN and invoice date
3. HSN code (minimum 6-digit for turnover > ₹5 cr)
4. Place of supply matching your registered state (for IGST vs CGST+SGST split)
5. Serial numbers for capital goods > ₹1 lakh (good practice, not mandated)

Common ITC Reversal Triggers

• Supplier not filing GSTR-1 on time → mismatch with your GSTR-2B → auto-reversal
• Payment to supplier delayed > 180 days → reversal required u/s 16(2)
• Goods used partly for exempt supplies → proportional reversal
• Asset written off before end-of-life → pro-rata reversal

How RAMOJ Invoicing Works

Every RAMOJ invoice lists HSN codes, state-wise GST split (IGST for inter-state, CGST+SGST for intra-state), and is auto-uploaded to GSTR-1 within 48 hours. You'll see it in your GSTR-2B the next filing cycle. This is general information only; consult your CA for advice specific to your business.