The Digital camera makers Canon, Nikon and Sony requested the government to eliminate digital cameras from the 28% GST slab which is highest considering all brackets, and this move will be favourable to India’s assertion to the Information Technology Agreement to reassure lower tax levy.
The companies explained in a letter to GST authority body and the FM Arun Jaitley, “India amongst other Asian countries like China, Mauritius, Korea, Indonesia etc. signed the ITA and has met its commitment by exempting various IT products including digital cameras from the levy of basic customs duty.”
Furthermore, they have written favouring reduced GST rates on digital cameras, “Demerit GST rate of 28% on a digital camera may be inconsistent with the government’s clear intent to reduce the tax rate on ITA products.”
The sale of the digital camera is high particularly in tier-2 and tier-3 cities, the companies asserted that when all other ITA products are put in 18% GST slab, the digital camera is also considered to put in the same bracket.
Gary Lee, a chief financial officer at Canon India said that India is a growing market for Canon sales and even the company wants to continue here with the same growth graph. He further said, “However, it is important that the tax regime is conducive for business–18% GST on digital cameras will also help in the Digital India initiative.”
The digital camera makers also mentioned that they will approach the Japanese embassy to enter upon the matter. Sanjay Bhargava, CFO, Sony India said that as GST implemented from 1 July 2017, the tax burden on digital cameras increased from that time existing 16-17% to 28%, which is quite high and blocking the sales as well. Also, it is not providing the companies with an equal-level field to grow. He expects GST council will consider this matter and come with a favourable outcome. “We also plan to approach the Japanese embassy for putting a request to the government on behalf of the camera industry,” said he Sanjay Bhargava.
The senior general manager at Nikon India expressed his concern on the issue as well. He said that the smartphones are put in the 12% GST rate. At present, the smartphones have inbuilt cameras which are replacing the sales of digital cameras and the industry is already in suffer because of this fact.
Recommended: Goods and Services Tax Impact on Mobile Phone Manufacturers