India's appetite for technology continues to grow at an extraordinary pace. From startups building their first server rooms to enterprises upgrading thousands of workstations, the demand for quality IT equipment far exceeds domestic production capacity. Over 90% of laptops sold in the country are still imported, predominantly from China, Taiwan, and Vietnam. If you are a business looking to import computer hardware into India, understanding the regulatory framework is not optional. It is essential.
The process of IT hardware import involves multiple government agencies, from the Directorate General of Foreign Trade (DGFT) to the Bureau of Indian Standards (BIS) and Customs. Since 2023, the government has placed certain IT products under a restricted category, requiring importers to obtain specific authorization before goods can enter the country. This guide walks you through every step of the computer parts import India process, covering registrations, duties, documentation, and compliance.
Who Can Import Computer Hardware in India
Any registered business entity in India can import computer hardware, provided it holds the required licences and complies with the applicable trade policies. This includes proprietorships, partnership firms, LLPs, and private limited companies. Individual consumers importing personal devices under baggage rules are exempt from the commercial import restrictions discussed in this guide.
The foundational requirement is an Import Export Code (IEC) issued by DGFT. This 10-digit identification number is compulsory for all commercial import and export transactions. Without it, customs will not process your Bill of Entry or release your shipment. You can apply for IEC registration online through the DGFT portal, and the certificate is typically issued within a few working days.
If you are setting up a new venture specifically for electronics hardware import, choosing the right business structure matters. A private limited company or LLP offers limited liability protection and enhances credibility with international suppliers, banks, and customs authorities.
Understanding the DGFT Import Management System for IT Hardware
In August 2023, the Indian government placed the import of laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers under the restricted category. These products fall under HSN Code 8471. This means you cannot freely import them. You need an Import Authorization from DGFT before the goods can enter India.
The Import Management System (IMS) was introduced to regulate these imports while encouraging domestic manufacturing under the Production Linked Incentive (PLI) scheme for IT hardware. The IMS has been extended annually, and for the calendar year 2026, importers must apply for Import Authorization through the DGFT online portal. The application window typically runs from mid-December of the preceding year through December 15 of the current year. Authorizations remain valid until December 31 of the respective year.
There are some key exemptions worth noting. Spare parts, assemblies, sub-assemblies, and components used for manufacturing IT hardware are not restricted. Laptops and tablets accompanying machinery like MRI scanners or UAVs are also exempt. Additionally, imports for research and development, testing, or benchmarking are permitted for up to 20 items per consignment without authorization. Government entities importing for defence and security purposes are similarly exempted.
However, if you are importing finished laptops, desktops, tablets, or servers for commercial sale or business use, the Import Authorization is mandatory. Applying early in the window is advisable, as processing times can vary.
Registrations and Licences Required
Before you can import computer hardware, several registrations must be active. Missing even one can delay or block your shipment at the port.
An active GST registration is critical because IGST is levied on all imports at customs clearance. Your GSTIN allows you to claim Input Tax Credit on the IGST paid, reducing your effective tax burden. Ensure your GST returns are filed consistently to retain eligibility for this credit.
BIS certification is particularly important for electronics hardware import. Several IT products, including power adapters, cables, and certain peripherals, fall under compulsory BIS registration. Foreign manufacturers must obtain a BIS licence before their products can be legally imported and sold in India. Always verify the latest Quality Control Orders before finalising your supplier.
Step-by-Step Procedure to Import Computer Hardware
Once your registrations are complete, here is the systematic process for bringing IT hardware into the country.
Step 1: Obtain IEC and Set Up Business Registrations
Apply for IEC via the DGFT portal. Simultaneously, activate your GST registration, create your ICEGATE profile, and ensure your business PAN is linked across all platforms.
Step 2: Apply for DGFT Import Authorization (if applicable)
If your product falls under HSN 8471, log in to the DGFT website and submit your Import Authorization application through the Import Management System. Specify the product category, estimated quantity, value, and country of origin. You may submit multiple applications during the year.
Step 3: Select Your Supplier and Classify the Product
Source hardware from global manufacturers or distributors in countries like China, Taiwan, Vietnam, South Korea, or the United States. Identify the correct HSN code for each product. Personal computers fall under 84713010, processors under 84715000, motherboards under 84733020, and other computer parts under 8473. Accurate classification determines your duty liability.
Step 4: Negotiate Terms and Arrange Payment
Agree on Incoterms (CIF, FOB), payment terms, and delivery schedules. Most IT hardware trades use Letters of Credit or advance payment. Factor in currency fluctuation risks, especially for large orders.
Step 5: Arrange Shipping and Insurance
IT hardware is sensitive to moisture, shock, and static. Use freight forwarders experienced in electronics cargo. Arrange comprehensive insurance covering transit damage, theft, and handling risks. Retain all shipping documents for customs filing.
Step 6: File the Bill of Entry and Clear Customs
Upon arrival at the Indian port or airport, file a Bill of Entry through ICEGATE. Attach the commercial invoice, packing list, bill of lading or airway bill, insurance certificate, DGFT Import Authorization (if applicable), BIS certificate, and certificate of origin. Customs officers will verify the documents and may inspect the consignment physically.
Step 7: Pay Customs Duty and IGST
Pay the assessed Basic Customs Duty, Social Welfare Surcharge, and IGST electronically. Once payment is confirmed, customs will release the goods. Retain all receipts for accounting and ITC purposes.
Step 8: Take Delivery and Maintain Records
Collect the hardware from the port warehouse or arrange transportation to your facility. Update inventory records, file your GST returns promptly, and store all import documentation for a minimum of five years for audit purposes.
Customs Duty and GST on Computer Hardware Imports
One of the significant advantages of importing IT hardware into India is the favourable duty structure for many categories. India has committed to zero or low Basic Customs Duty on a wide range of IT products under the WTO Information Technology Agreement (ITA).
For most core IT hardware, including desktops, laptops, processors, and storage devices, Basic Customs Duty is nil. The primary tax obligation is IGST at 18%, which is recoverable as Input Tax Credit. However, products like monitors and certain display units attract higher BCD rates, as they fall outside ITA concessions.
A Social Welfare Surcharge of 10% on BCD also applies where BCD is not nil. Always verify the latest duty rates on the ICEGATE portal or CBIC website before placing your order, as rates can change through budget notifications or special exemptions.
The IGST paid at the port is fully eligible for Input Tax Credit, provided you hold an active GSTIN and file returns on time. This makes the effective cost of computer parts import India significantly lower than the headline tax rate suggests. For expert assistance with GST compliance and return filing, Patron Accounting offers comprehensive support.
Key Documents Required for IT Hardware Import
Proper documentation ensures your consignment clears customs without delays or penalties. Here is a comprehensive checklist of documents typically required when you import computer hardware into India.
These include your IEC certificate, DGFT Import Authorization (for HSN 8471 products), GST registration certificate, commercial invoice from the supplier, packing list with product descriptions and serial numbers, bill of lading or airway bill, certificate of origin (important for availing preferential duty under FTAs), insurance certificate, BIS licence or certificate of conformity (for notified electronics), WPC approval (for devices with wireless capabilities), and test reports or compliance certificates as required by the product category.
Engaging an experienced customs house agent familiar with electronics imports can save time and prevent costly errors. For foundational registrations like IEC registration, GST registration, or setting up a private limited company, Patron Accounting provides end-to-end professional guidance.
