HIFI Equipments and GST impact ??

[amateur]

Hi All,

Will GST impact the prices of hifi gears ? which tax bracket this may fall under ? any idea ?

I could see some discounts if we buy before this month, hence the question.

Thanks.

 

[prash2k01]

i got an email from a dealer .............

Dear Friends of Distinctive Sound,

beginning of this year I had informed you about the proposed Goods and Services Tax (GST) (see my mail below). This tax will now come into effect on July 1st. 2017. The tax levied on loudspeakers, amplifiers and other electronic apparatus will be 28%. I have attached the complete GST schedule for goods. In chapter 85 on page 178 you will find that the equipments that we need for our hobby are being taxed at 28%. The earlier Value Adde Tax (VAT) was 15%. No doubt that the prices will have to go up from July 1st. Therefore once again, if you are planning any new purchase, do it now, so that the import and sale can be completed before July 1st.

Kind regards,

Jochen Semler
High End Audio Equipment

 

[Audio_Freek]

28% Taxed on the Electronics.So Hifi Audio\Video will be a dream in India with this tax %.Some Dealer's mush shut down their distribution for few Brands I think.Also Dealers have nice edge to Hype the showing GST as reason.

 

[Naturelover]

My local dealer tells me prices would increase around 5%

 

[Selvin]

Just I had some discussion about this with one of my colleague from sales team. According to him there will not be much change.

He explained the scenario as below.

Existing Tax scheme.
consider a product which dealer cost is 1,00,000.
Import Duty - 10%
Import CVD - 14%
Import SAD - 4%
So the total landing cost at dealer premise is : 1,28,000.

Now imagine the dealer sell this product with about 30% margin @ 1,66,400 + 14.5% VAT. So the net cost to buyer is 1,90,528.

According to new GST Scheme

consider the same product which cost is 1,00,000.
Import Duty - 10%
Import CVD - 14% = Rs,14,000.
So the total landing cost at dealer premise is : 1,24,000.

Now imagine the dealer sell the product with about 30% margin @ 1,65,000 + 28% GST So the billing cost to buyer is 2,11,200.

After billing (sales of the product) the dealer can apply and get refund for Rs.14,000 which paid at the time of import as CVD.
So the net cost may be about 5% higher as Naturlover said. But we don't know how many dealers back transfer to buyer which tax refund he will get after billing.

 

[reignofchaos]

The above is wrong. GST will subsume Countervailing Duty(CVD) and Special Additional Duty (SAD), however, Basic Customs Duty will continue to do its round in the import bills.

https://cleartax.in/s/gst-impact-on-import

So it will basically be 10% inport duty and then 28% GST on it.

 

[arunkvivek]

The above is wrong. GST will subsume Countervailing Duty(CVD) and Special Additional Duty (SAD), however, Basic Customs Duty will continue to do its round in the import bills.

https://cleartax.in/s/gst-impact-on-import

So it will basically be 10% inport duty and then 28% GST on it.

Does it mean that it is cheaper to import after 1st July?

 

[reignofchaos]

Does it mean that it is cheaper to import after 1st July?

I really can't say as I'm not an expert in this area. All I mentioned was that the earlier post was not completely accurate according to available reports.

 

[ItsMe]

If this is true, I see good prospects in starting a grey market store ;-)

 

[anm]

Lot of news about discounts on electronics. Pls share any actual pre gst sale.

 

[spirovious]

Lot of news about discounts on electronics. Pls share any actual pre gst sale.

https://paytm.com/shop/h/home