FAIITA appeals for 18% GST slab for all IT products
5. Notebook Book computers as a product is saddled at GST @18% while standalone Notebook battery and charger is saddled @28%(currently attracting 17 .5 %);
6. IT deployments have graduated to networked environment, for information sharing and collaborative working. These days there is no IT infrastructure in isolation and use of data cables, connectors network switches etc. is essential. Notably from current 17.5% (12.5% ED and 5% Vat respectively) the tax incidence will increase to 29% in GST.
7. It is evident that even success of GST will largely depend on presence of seamless IT infrastructure notwithstanding other initiatives of Government of India around “Digital India”. Factually, any IT infrastructure deployment requires integration of various IT products. A varying duty will not only add to confusion but will also encourage manipulative avoidance; and
Further the letter included request for one GST slab of 18% for all IT products to simplify IT project implementations and avoid misrepresentation.
FAIITA, the registered national umbrella body over all state IT Federations/ associations represents direct business interests of its 30,000 (thirty thousand) pan India member-business organizations.