Printer market in the country is facing a lot of headwinds due to the digital drive in organizations. The government’s move to revise GST rates has brought down the prices of single-function printers but increased the prices of multifunction printers in the country. Earlier the GST Council had set the GST at 28 % on all kinds of printers. But it revised the rates for single function printers lowering the GST to 18%.
It is believed that the sale of single function printers might go up after this comes in effect. However, it is not so easy to estimate right now, given the fact that the sale of single function printers have been constantly going down for over many years now. However, the new GST regime might further give a blow to multifunction printers. MFPs are the only segment that has gone up. Players such as HP, Canon, Epson, Samsung, Ricoh, Xerox and Panasonic, among others might face headwinds if the prices remain beyond the consumer expectations.
The 16th meeting of Council led by Finance Minister Arun Jiatley concluded on 11th June where rates of 66 items were revised. The Goods and Services Tax will come into effect by 1st July 2017. Most of the items have been listed under four broad tax slab- 5%, 12%, 18% and 28%.
Items like camera, printed circuits, speakers and monitors, printers (other than multi function printers), electrical transformer, CCTV, optical fiber are priced at 18% tax under GST. This might increase the sales of single functional printers in the country. Although the multi-functional printers will continue to remain expensive. The printer market in India has grown tremendously in the last few years.