Economy

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

IT hardware firms request uniform GST rate of 18% on IT products”

Among senior CTD officials from the Gandhi Maidan circle who explained provisions of the GST, its benefits and advantages to the traders included deputy commissioner Neeraj Kumar, assistant commissioners Pankaj Kumar Prasad and Vinay Kumar and commercial tax officers Renu Kumari and Anamika Kumari. One might be concerned firms could use input tax credits to fatten their margins.

It also gives commissioners the power to extend this period by further 90 days on recommendation of the GST Council. This means, at the time of paying GST collected on sales, assessee can reduce the GST they have paid on inputs used for their business.

There are seven tax slabs, namely nil, 0.25%, 3%, 5%, 12%, 18% and 28% under the GST with an additional cess on sin and luxury items.

Given that a fitment exercise has been undertaken by the government to arrive at the rate of GST applicable on various products, MAIT said, the fitment rate on printers is at a maximum of 18.5 percent (excise duty of 12.5 percent and Value-Added Tax of 6 percent).

Further, the government will refund 100 per cent excise duty for goods costing above Rs 25,000 and bearing a brand name of the manufacturer and are serially numbered like TV, fridge or auto chasis.

The tax on gold is set to increase from July 1.

"This provision comes as a sigh of relief for entire dealers/distributors network of motor vehicle and other conveyances, as such dealers/distributors would get the entire credit of excise paid by original manufacturer", Nangia & Co Directors (Indirect Tax) Rajat Mohan said. Consumer demand faces a headwind from the higher rate of tax. "The 3 per cent rate is reviewed as being more manageable and will ensure greater compliance by small and independent retailers", the report said. Interest at the rate of 18 per cent would be chargeable on the failure to deduct and pay the amount to the government.

The draft rules issued earlier did not mention this.

The GST Council has made a decision to set up a committee comprising central and state tax officers to act on complaints of profiteering by industry post-GST.

The three per cent GST will replace the excise duty and Value-Added Tax components of 2.2 per cent. Customs duty will remain at the existing level.



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