RITPA Request to Reduce GST Rate from 18% to 12% for IT Industries

RUSHIKONDA IT Park Association (RITPA) raised the voice to cut the goods and services tax (GST) upon the IT sector from 18% to 12% as it was burdening a higher taxes on the industries.

“This is a crippling factor for us to scale up and we hope the Centre will reduce GST as requested by the IT sector across the country,” O Naresh Kumar, vice president of Bizz Buzz commented. GST (Goods and Services Tax) is liable to be paid upon the payment receipt of invoices and not on raising the invoice.

“TDS on IT services is currently fixed at 10 percent. This should be reduced to 2 percent like in contracts. GST on software products also must be reduced from 18 percent to the lowest slab to encourage more purchases as part of attempts to revive the economy after the pandemic hit everyone,” he added.

Working from home Working form home may feel lighter during this COVID-19 pandemic but the tax implication will be much higher. In this article, we provide tax applicability based on the WFH situation now becomes a new normal for most companies because of the lockdown. Through the guidelines of the government for the IT or ITeS industry along with the increasing number of employers prolonging work from home for more productivity. There are numerous employees who are working across the country.

The employers are working from across India despite lockdown being done so for the health of the employee and safety along with the cost that is somewhere linked to it.

Read Also: GST Impact on the Indian IT Industry Have a brief knowledge on GST Impact on the IT Industry of India. Also, we have cleared various points as multi-point taxation, place of supply, GST rate on IT, etc

“The convenience of working from home has also brought along additional expenses for employees, such as investment in high-speed internet, power back-up, setting up a home-office requiring work chairs and desks, electronic accessories, and air conditioning to maintain efficiency. Some employers have granted allowances, reimbursements, and even assets to employees to meet these requirements.”