In the wake of technological advancement, the IT industry is booming and accounts for approximately 66 per cent of the $123-129 billion dollar market. This colossal business employs around 11 million people in India alone. To put that into perspective, the Indian army consists of a total 4.6 million.
India has commendably optimized its administrative costs. So much so that compared to the US, it spends approximately 3 times less capital on the same.
IMPACT OF GST ON INDIAN IT SECTOR
GST sought to unify the bazillion taxes which existed previously into a unified and streamlined system. This naturally required traders to undertake some new steps in order to transition into GST. Traders from every nook and corner of the country who were previously registered under the Central Service Tax Department were required to register under GST post the 1st of July.
2. Outpouring effects of taxes-
Since GST has made the cut, clientele as well as their IT employers or service providers are entitled and permitted to claim the full credit of GST. The greater accessibility provided by GST is expected to bring to limelight, the outrageously wild and spurting effects of the present tax structure which is evident in the Annual Maintenance Service contracts.
3 Smartphones, tablets and accessories-
4.Gaming Consoles and Gadgets
We all love our games and want them to be as affordable and accessible as possible. The good news is that under GST, there will be a slight decrease of 0.5% in the tax rate so as a consumer, your gadgets and game prices won’t incur a drastic overhaul as in the case of some other products.
Gaming consoles like the Playstation, controllers, games, fitness trackers as well as Virtual reality headsets like the Google Daydream or Samsung Gear VR are placed under the 28% tax bracket as a pose to the previous 28.5% (hence the 0.5% decrease). On the other hand, hard-drives, memory cards and other utility gadgets are taxed at 18%.
5.TV, Laptops, Desktops, Cameras
The above mentioned electronics are segregated basis two percentiles- 18 and 28%. The 18% bracket is more towards computer hardware and includes laptops, notebooks, netbooks and desktops while the 28% encompasses other electronic items such as televisions, DSLRs, digital and video cameras, recorders, computer peripherals and IT accessories.
We hope this guide aids and abets you in making the awfully important decision of which gizmo to buy!