Tuesday, June 18, 2024
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India HCP Market Poised to Rebound Next Quarter After a GST Affected 2017 Q2, IDC India Reports

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The HCP market in India recorded an overall shipment of 714,129 units, which was a decline of 5.8 percent on a year-on-year (YoY) based on the latest IDC Asia Pacific Quarterly Hardcopy Peripherals Tracker, August 2017. The decline was mainly due to the implementation of the Goods and Services Tax (GST) from July 1, 2017, which caused weak sell-in shipments in the second quarter as the focus of the distributors was on clearing the existing inventory.

Prior to GST, Printers used to have roughly 18% tax which was split between 12 percent Countervailing Duty (CVD) and 5.5 to 6 percent VAT depending on the state. However, Post GST, single function printers continue to be taxed at 18% slab while multifunction printers (MFPs) are taxed at 28% which has led to most vendors increasing prices of MFPs by 10-12 percent from July onwards.

“Owing to GST implementation, there was resistance from distributors in stocking inventory during May/June as the India government was only willing to give input tax credit up to 60% of their total GST liability against the excise duty already paid for goods purchased before July 1 (without furnishing the original excise payment receipt) resulting to a decline in overall demand,” says Nishant Bansal, Research Manager, IPDS, IDC India. “Overall, GST implementation resulted in weak sell-in shipments across the entire IT hardware and client devices market including PCs and smartphones,” adds Bansal

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