HSN code and taxability

[VishnuPriya R]

An IT company wants to sell its used laptops. However the laptops are no longer in a usable condition and it can only sold as scrap i.e E waste. In this case, should we use HSN 8417 (i.e HSN code for laptops) or HSN 8548 (i.e HSN of E waste). Further, the sale of E waste amounts to sale of used assets and warrants ITC reversal as per section 18 (6)?.

Thanks in advance

AI Summary

E waste taxation: classify non-functional laptops as e waste for GST and apply higher-side ITC reversal rules.
Sales of non-functional laptops that can only be disposed of as scrap should be classified and taxed as e waste under the Chapter 85 notification (serial no. 371 A); where the transaction is disposal of a used asset, input tax credit reversal must be determined by applying the ITC reversal provision together with the relevant rule to give effect to the "whichever is higher" criterion, and any higher tax impact must be accounted for.