Tirupur IT Association representatives had recently met Union Minister for commerce and industries Nirmala Sitharaman and submitted their expectations and concerns about G.S.T.
“We gave the request letters given from Confed-ITA admin board and from TITA regarding the relaxation of higher tax value products like printers and monitors. In G.S.T all major I.T products coming under 18 percentage. But some kind of peripherals coming under 28 percentage. 90 percentage of the market is using multi function printers and it lies under 28 percent. Small monitors also coming under 28 percentage. It may results to increase the product pricing 10-15 percent. Because of the tax rate in monitor overall Pc rate may increase nearly 8 percentages,” says Pratheesh Mathew, President of the association.
Since most IT products falls under 18% tax slab, there may be a hike of product pricing of 4%. Therefore IT market won’t get much benefits compared to other Industries. According to the association, the GST is definitely to strengthen the B2B market and will solve the threats from unethical online pricing.