The Goods and Services Tax (GST) Council should look at reducing the tax rate on printers and other accessories from the proposed 28 percent to 18 percent to align them with the existing tax rates, said MAIT, the body representing India's IT hardware, training and R&D service sectors.
The Council has fixed a flat rate of 28 percent on monitors, printers and other accessories while the rate for desktops and laptops is 18 percent, as against the average 14-15 percent currently levied by various states.
"The fitment rate on printers is at a maximum of 18.5 percent (excise duty of 12.5 percent and VAT of 6 percent). Accordingly, the rate of GST on printers should be around 18 percent.
Therefore, it is suggested that the GST tax slab for printers of 28 percent should be omitted, which will ensure that printers are subject to tax at the rate of 18 percent which is closer to the rate printers is taxed currently," MAIT said in a statement on Tuesday.
"The Finance Ministry immediately needs to clarify anomaly in tax slabs in printers, projector and monitors. 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," Nitin Kunkolienker, president of MAIT, said in the statement.
GST rate on other IT accessories as LAN / Data cable
"These products are on 12.5 percent CVD and 5 percent VAT. In GST proposed tariff other IT accessories as LAN / Data cable is showing as 28 percent. They form an integral part of all digital installation hence should be considered part of IT and should be at 18 percent slab," MAIT said.
March quarter PC sales
The Personal Computing Device Tracker May 2017 released by the International Data Corporation (IDC) said that personal computers shipments during January-March 2017 this year stood at 2.16 million units, up 12.5 percent from the December 2016 quarter.
Top vendors in India include Hewlett Packard, Dell and Lenovo.