Connect with us








Main

GST ​brings surge in demand of Computers & Software CAIT urge Govt to exempt software from tax rate

CAIT

There is a visible huge surge in demand of computers and software throughout the country, thanks to the roll out of GST​, motivating the masses to digitalise their business formats, including accounting and business communications, etc. Unprecedented rise in demand for both Computers & Software in last 5 days comparing with month of June also indicate that traders so far away from digital technology is also willing to come on board which may result into huge transformation of informal business into formal economy. In the wake of encouraging more people to adopt digital technology, the CAIT has suggested the Government that for some specified period either exempt the Accounting software from tax under GST or bring the same under the tax slab of 5%. Currently, the software is capped under 18% tax rate.

An per a feedback received by Confederation of All India Traders (CAIT) from different parts of the Country has revealed that during the last five days of the roll-out of GST, the demand for computer hardware has increased 20% while at the same time, the demand for accounting software has also increased up to 50% in comparison to the last month. About 40% of this demand comes from Metro and Big Cities whereas rest of 60% demand relates to smaller towns in different States across the Country.

It is interesting to note that in metro cities, largely the demand relates more on up gradation of existing Computer Hardware & Software whereas in tier 2 & tier 3 cities more demand relates to new Computers & Software.This demand is also likely to increase  in the coming weeks.

The CAIT has maintained that nearly 60% of small businesses in the Country particularly in tier2 and tier3 cities still have not computerised their existing business format whereas GST is entirely based on e-compliance having four verticals e-tax, e-return, e-audit & e-assessment.  Whether paying tax, or filing return, everything has to be routed through digital technology under GST, hence there is already a persistent demand for computer systems and accounting software in the market.However, currently there is huge disparity between the tax rates on different component of com puters making them unfeasible for the small traders, according to CAIT.

CAIT National President Mr. B. C. Bhartia & Secretary General Mr. Praveen Khandelwal said​

Advertisement








that there is huge difference of tax rates on computer hardware like CPU is @ 18% and the Monitor is @28% which is

​complicated​ and discouraging for the small traders while they endeavour towards adopting GST regime in true spirit. “Looking at the emerging demand and to promote more and more traders to adopt digital technology, it is urgent that all sorts of Computer Hardware should be capped under one tax rate may be at 18% and the spare parts of the computers may also be taxed at lower rates to make it easy for the traders to upgrade their systems without straining their finances.”-​said

Mr. Khandelwal​ Despite enormous growth in demand and sale of computer products the challenge of disparity in tax rates stands as an obstruction in meeting the market demand, according to CAIT. Moreover, this situation has also given a rise to chaos and confusion in smooth and faster adoption of India’s biggest tax reform and thus it requires immediate attention.

Trending