1. Home
  2. INDIA
  3. IT hardware firms request uniform GST rate of 18 percent on IT products

IT hardware firms request uniform GST rate of 18 percent on IT products

IT hardware firms request uniform GST rate of 18 percent on IT products

IT hardware firms have requested the government that uniform GST rate of 18 percent be applied on IT products like monitors and printers instead of proposed 28 percent for some items, which will make them expensive.

The IT hardware industry body MAIT has also sought clarity from the government on two rates proposed for printers under goods and services tax (GST), and demanded that IT products should be covered under the lower slab of 18 percent, which is closer to the current tax levels imposed on them.

“It is recommended that the list of IT goods as provided in the Information Technology Agreement…to which India is a signatory be subject to GST at the rate of 18 percent. This will also ensure that the aim of the government of digital India is achieved as GST at the rate of 28 percent will make IT products expensive to the end customer,” Manufacturers Association for Information Technology (MAIT) said in a statement.

Currently, up to 18.5 percent duty is levied on monitors and projectors. However, the government under GST regime has proposed duty of 28 percent on monitors and projectors.

GST on other IT accessories such as LAN and data cable have been proposed at 28 percent, while up to 17.5 percent duty is levied on them at present. This includes 12.5 percent countervailing duty and 5 percent VAT.

“The Finance Ministry immediately needs to clarify anomaly in tax slabs in printers, projector and printers. All of these items along with IT accessories as Data cable collectively form important part of ‘Digital India’ and they should be taxed at 18 percent to make Digital India successful,” MAIT President Nitin Kunkolienker said.

The industry body has said that there is ambiguity with respect to the rate of GST on printers.

The government has proposed 18 percent GST rate on printing machinery used for printing by means of plates, cylinders and other printing components of heading, other printers, copying machines and facsimile machines, whether or not combined, parts and accessories.

While on printer, photo copying, fax machines, ink cartridges it has proposed to levy 28 percent GST instead of 18 percent duty, which is close to the current level of total tax imposed on them.

SOURCE: Times Now




Enquiries at EnterpriseTV.my@gmail.com