Post GST pric­ing sug­ges­tion con­fuses IT part­ners

The DQWeek (Chennai) - - C L A S S I F I E D / NEWS -

has made it clear that we will be get­ting only 40% in­put out of all sales, this is the big­gest call for con­cern as of now ac­cord­ing to me; as the IT in­dus­try is work­ing on 3-4% of mar­gins at max­i­mum on re­tail level and around 2% on dis­tri­bu­tion level. It is dif­fi­cult to liq­ui­date the stocks as the deal­ers also know there is no way to buy stock and make money as GST is com­ing. Also there is lack of clar­ity in mon­i­tor busi­ness,as it should be clear in terms of tax­a­tion on par­tic­u­lar things”.

In talk­ing to The DQ Week, Neeraj Agrawal, Sec­re­tary, Com­puter As­so­ci­a­tion of Eastern In­dia(COM­PASS) shared, “From the con­sumer point of view, the big­gest ad­van­tage would be in terms of a re­duc­tion in the over­all tax bur­den on goods, which is cur­rently es­ti­mated to be around 25% – 30%. In­tro­duc­tion of GST would also make In­dian prod­ucts com­pet­i­tive in the do­mes­tic and in­ter­na­tional mar­kets. As far as IT mar­ket is con­cern and as a re­spon­si­ble as­so­ci­a­tion we have send mes­sage to all our as­so­ci­a­tion mem­bers for the nec­es­sary pre­cau­tion / mea­sures to be taken by them, we have send ad­vi­sory to all OEM’s & ven­dors on be­half of Com­pass re­quest­ing them to co op­er­ate with the chan­nel and to come out with pru­dent poli­cies so that there is no losses to chan­nel part­ner for the clos­ing stock in VAT regime. In re­cent past we have or­gan­ised few sem­i­nars on GST”.

Neeraj fur­ther added, “Af­ter the meet­ing of GST Coun­cil on 3rd/4th June we are ex­pect­ing more clar­ity on GST and hence we are plan­ning a sem­i­nar just af­ter that, both with the Gov­ern­ment Of­fi­cials and GST Con­sul­tant so that our mem­bers can be up­dated about the FAQ’s. We ex­pected bit lower rate of GST in IT Prod­uct which mostly is in 18% – 28% slab. We have sub­mit­ted our sug­ges­tion through Con­fed­er­a­tion for the amend­ment but are ex­pect­ing MAIT and other Fed­er­a­tion for giv­ing rep­re­sen­ta­tion to Fi­nance Min­istry”.

It is dif­fi­cult to pre­dict and quan­tify the im­pact on the IT in­dus­try be­fore the gov­ern­ment an­nounces the fi­nal GST rate, discussed above are some re­ac­tions from the IT as­so­ci­a­tion’s lead­ers all over In­dia on the re­cent an­nounce­ments .

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