GST Impact on Gadgets and IT industry, Gadgets and IT Industry, gadgets

 

In the wake of technological advancement, the IT and gadgets industry is booming. It 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.

 

 

 

Impact of GST on Gadgets

  1. Registration –

GST sought to unify the bazillion taxes which existed previously. There is a more unified and streamlined system now. Traders  naturally undertook some steps in order to transition into GST.  Previously traders from every part of the country were registered under the CST Department. They now have to register under GST.

  1.  Smartphones, tablets and accessories-

GST Impact on Smartphones, GST Impact on Gadgets and IT industry, Gadgets

  1. Gaming Consoles and Gadgets

We all love our games and gadgets. We also 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 under the 28%  tax bracket.  The previous tax rate was 28.5% (hence the 0.5% decrease). There is a GST of 18% on hard-drives, memory cards and other utility gadgets.

 

  1. TV, Laptops, Desktops, Cameras

GST Accounting, GST Impact on Smartphones, GST Impact on Gadgets and IT industry, Gadgets

There are two tax rates for the above mentioned electronics – 18 and 28%. The 18% bracket is more towards computer hardware of the IT Industry. It includes laptops, notebooks, netbooks and desktops. The 28% includes other electronic items such as televisions,  computers and other accessories. DSLRs, digital and video cameras and recorders also fall into this category.