- A distinction between printers and multifunctional printers, which have copying machines, scanners rolled into one, by making an exception for the latter in the 18% category in Goods and Services Tax has peeved the IT industry that has again knocked the doors of the government.
- The last GST Council meeting on June 11 had decided to place printers in the 18% slab following representations from the industry after confusion over whether they would be in 28% slab or 18%.
- But, the notification of the rates said printers(other than multifunction printers) would face 18%, the revised rate approved by the GST Council.
- What has flummoxed the industry is the exception created for multifunction printers that fall in the same Harmonised System of Nomenclature as simple printers.
- More than 80% of printers sold in the country are multifunction printers.
- The pre-GST tax incidence on printers is in the range of 16-18% with most states levying value-added tax at rate of 5%. Industry says the government had assured that the fitment exercise would ensure that it is in accordance with the current tax incidence and therefore multifunction printers should be categorised under 18% bracket rather than 28%.
- It has said that information technology (IT) products such as multifunction printers are the core element of Digital India initiative and the price hike due to high tax is expected to have a counter effect.
- The GST rate on all printers should be synchronised with similar kind of digital products such as laptops and desktops and the same shall be taxed at 18%, it has said in the representation.
via GST: GST: Scanning the new rates for printers – The Economic Times