Raising concerns over high tax rates under Goods and Services Tax (GST) regime for some electronic items like printers, monitors and data cables, the Manufacturers’ Association for Information Technology (MAIT) has said that the government’s Make in India electronics plan will be hurt by high GST rates, as the industry has found that the import of such electronics is cheaper than manufacturing them locally.
The industry body which represents India’s IT hardware sectors and certain manufacturers, further expressed need to put all the IT products in one slab, against different tax rate for the pre-assembled desktops, locally manufactured standalone monitors and data cables. It requested the government to look over this anomaly and further made a case to put IT goods under 18% rate slab considering the importance of IT in government projects. Under the new tax regime, the pre-assembled desktops are charged at 18%, while standalone monitors which are mostly manufactured in the country are charged at 28% , while creating anomaly, desktop computers are imported into India at zero percent and have been put at 18% rate.
MAIT said one slab rate for all IT goods will help local manufacturers build products and contribute to the cause of Digital India. MAIT praised the government’s Make in India initiative but raised need of concrete policies for the initiative to lessen the burden of imports.
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