Re: [AI] GST cut for e-books, but publishers are not elated, wheelchair accessory luxury tax - ETC

[Amiyo Biswas]

It is a bad excuse that 5% GST should be imposed since GST-nil commodities 
are not eligible for input credit. If you purchase a Braille device, you 
have to pay GST when it was tax-free before. Why should not the whole 
assistive device industry be exempted?


Remember, gold attracts 3% GST. Should we remain silent?

With best regards
Amiyo Biswas
Cell: 9433464329

- Original Message - 
From: "Vaishnavi Jayakumar" 
To: "WE the PwD Egroup" ; "Egroup DRA" 
; "sci-india" 
; "AccessIndia.org.in" 


Sent: Wednesday, August 1, 2018 10:59 AM
Subject: [AI] GST cut for e-books, but publishers are not elated, wheelchair 
accessory luxury tax - ETC




Hi everyone,

Time to revive GST action on the sector's end.

  1. Amba, what about ebook copyright law exemptions


  for blind and GST wrt this press clipping? Printed and Braille books are 
at

  nil GST btw.
  2. Nipun, what progress on the GST PIL


  ?
  3. Prashant, any update on the wheelchair accessory luxury tax of 28%


  ?


Any other developments post last year's campaign? Check archives at
www.bit.ly/whytaxdisability to refresh your memory.

---

*GST cut for e-books, but publishers are not elated*
thehindu.com/sci-tech/technology/gadgets/gst-cut-for-e-books-but-publishers-are-not-elated/article24514391.ece


*Mumbai, July 25, 2018 23:17 IST*

  - E-readers are popular, but e-books have weak sales in India
  - A lower tax rate is applicable if titles also have a print version,
  which has not excited the industry
  - What might have been a leg-up for book publishers to help reduce their
  carbon footprint, might just end being a weak announcement by the
  government.

The GST Council has announced some ‘relief’ for publishers in the form of
reduction in GST on e-book sales — from 18% to 5%. The reduction is
applicable only to books that have a print version as well.

The announcement has left publishers — who are usually busy thumbing
through manuscripts and dealing with high production costs — perplexed
because there appears to be little clarity on what the move means for the
industry.

Most publishers, concerned with spiralling costs, voice scepticism. Thomas
Abraham, managing director, Hachette India, says, “The whole thing is a 
bit

absurd. It would have made more sense if the rather draconian 12% new GST
levied on royalties had been abolished, and the 12% GST on printing
material was reduced, back to 5%. Both have come as a double whammy that
have raised costs for publishers with no respite, as input tax credit is
also not available for books, because books are GST- exempt.”

Sanjiv Gupta, COO, Penguin Random House, seems to concur with Abraham. “In
India, typically the cost of an e-book is the same as the print book. It’s
a welcome step but they should reduce the tax on printing of books. We had
VAT earlier and that was 4% to 5% and some printers were charging it and
others were not. E-books worldwide have touched 35% of the total business
but it has come down to 25%. In India, it has stayed from 5% to 7%.”


*So will the new GST help?*
There are many questions. Will just one printed copy suffice for a book to
qualify for the reduced GST? And since the announcement comes under
Education/Training/Skill Development’, will it apply to fiction and
non-fiction?


*Waiting for the fine print*
Pratik Jain, partner and leader (Indirect Tax), Pricewaterhouse Coopers
(PwC), says the notification does not apply only to educational books,
“Let’s see the wording of the notification to be issued. It’s not limited
to educational books as per the press statement. The only condition is 
that

the print version should exist. Now, whether it does exist or not would
depend on facts of the case. If only five copies are printed, there could
be a case of evasion.”

While Oxford Univerity Press and Amazon Publishing declined to comment,
Neelkanth Karinje, CFO, Juggernaut, thinks the announcement will have no
impact on the company’s digital publishing business.

“We don’t have a print version of text books or those related to 
education.

It seems the government is in no mood to abolish GST on e-books, but only
giving a concession to education sector,” he said.



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[AI] GST cut for e-books, but publishers are not elated, wheelchair accessory luxury tax - ETC

[Kotian, H P]

All
This mail did not make it to the list.
Harish
Quoting:

[GST COUNCIL MEETS NEXT ON 4th AUGUST AT NEW DELHI]
---.
Dear GST Council,
Why a LUXURY GST rate on wheelchair parts and accessories?
Pre-GST, all wheelchair and accessories/parts imports were excluded from any 
taxation and custom duty. Post GST implementation, the entire wheelchair 
industry is facing tremendous amount of confusion and uncertainty with respect 
to taxation being levied upon wheelchair parts and accessories.
What's clear is that HS Code Heading 8713 by definition 'Carriages for disabled 
persons, whether or not motorised or otherwise mechanically propelled ' is 
applied for all wheelchair imports which attracts 5% IGST. However the 
confusion lies in the following :
WHEELCHAIR PARTS
There is ambiguity related to the imports of wheelchair parts as they have been 
classified under two different GST rates :
* HS Code '90 or any other chapter' which by definition 'Parts of goods, namely 
crutches, wheelchairs, walking frames, tricycles, braillers and artificial 
limbs' attracts 5% IGST.
* HS Code Heading 8714 by definition 'parts and accessories of vehicles of 
heading 8711 and 8713 ' which attracts 28% IGST.

Our concern is which HS Code would be applicable to wheelchair parts such as 
wheels, brakes, frames etc.? If "90 or any other chapter" is the correct 
classification, then we would like to request the relevant HSN Code (Is it 
871390907?).

Manufacturers are constantly on the receiving end when importing these items as 
the Custom Department levies variable GST rates and sometimes even duty which 
negatively impact business operations.
WHEELCHAIR ACCESSORIES
These include pressure relieving and positioning cushions and postural supports 
(backrest, headrest, harnesses etc.).
These are clinically relevant interventions for people with disabilities which 
prevent any life-threatening secondary
health complications such as pressure sores and posture deformities.
As per GST guidelines, wheelchair accessories have been classified under HS 
Code Heading 8714 which attracts 28% IGST.
Our concern is that luxury taxation of 28% has been imposed on wheelchair 
accessories. We request that wheelchair accessories rate should be harmonised 
along with the wheelchair (HSN 8713) which attracts 5%.
We wish to eliminate any ambiguity related to import of wheelchair parts and 
accessories. This will allow companies serving people with disabilities to 
standardize business processes while avoiding any unwanted taxation imposed on 
people with disability.
Sincerely,
We the People (with disability) of India
Why Tax Disability? Roll back GST for PwDs
Disability in India
--- IMAGE DESCRIPTION ---
GRAPHIC :
A price tag reading 'Special Divyang Rate' separates 2 images. The left is a 
cross section of a spinal wheelchair cushion. The right - cross section of a 
pressure ulcer.

Text :
Of course we're SORE @ 28% GST for wheelchair cushions!
Spinal cord injured wheelchair users face much stress, warring pressure sores.
Why add PRICE PRESSURE to wheelchair cushions that prevent deadly ulcers?
Bad enough, > 99% of India is INACCESSIBLE and unfriendly to disabled citizens.
Then you equate disability with DIVINITY.
Now you tax disability as a LUXURY.
Govt of India, stop PENALISING disability! www.bit.ly/whytaxdisability

On Wed, Aug 1, 2018 at 10:59 AM Vaishnavi Jayakumar 
 wrote:
Hi everyone,

Time to revive GST action on the sector's end.
1.Amba, what about ebook copyright law exemptions for blind and GST 
wrt this press clipping? Printed and Braille books are at nil GST btw.
2.Nipun, what progress on the GST PIL?
3.Prashant, any update on the wheelchair accessory luxury tax of 
28%?

Any other developments post last year's campaign? Check archives at 
www.bit.ly/whytaxdisability to refresh your memory.
---
GST cut for e-books, but publishers are not elated

thehindu.com/sci-tech/technology/gadgets/gst-cut-for-e-books-but-publishers-are-not-elated/article24514391.ece
Mumbai, July 25, 2018 23:17 IST
* E-readers are popular, but e-books have weak sales in India
* A lower tax rate is applicable if titles also have a print 
version, which has not excited the industry
* What might have been a leg-up for book publishers to help reduce 
their carbon footprint, might just end being a weak announcement by the 
government.
The GST Council has announced some 'relief' for publishers in the form of 
reduction in GST on e-book sales - from 18% to 5%. The reduction is applicable 
only to books that have a print version as well.

The announcement has left publishers - who are usually busy thumbing through 
manuscripts and dealing with high production costs - perplexed because there 
appears to be little clarity on what the move means for the industry.

Most publishers, concerned with spiralling costs, voice scepticism. Thomas 
Abraham, managing director, Hachette India, says, "The whole thing is a