Jacked Up processor Prices - Who is getting the benefit

So after a long period of time I've been eyeing on an Intel Core i5-12600K but the exorbitant price tag is what keeping me from getting one.

The cpu is selling at $279 on newegg and on amazon.com but here it is selling around more than $400.

I want to know who is pocketing the difference of more than $120 .. I can understand there are govt. taxes and import duties but a little over 40 percent price is just too much to ask for.

I've seen this is what going on for years. Is this govt. tax or the distributor / importers are tagging it with such hefty price tag ?

So much for Digital India .... I can get one of course but what's the point in paying those ~$120 extra. There's no chip shortage or anything like this for atleast for Alder Lake platform but still here the pricing is so much I think there's some cartel is there behind the scene.

topgear said:
So after a long period of time I've been eyeing on a Intel Core i5-12600K but the exorbitant price tag is what keeping me from getting one.

The cpu is selling at $279 on newegg and on amazon.com but here it is selling around more than $400.

I want to know who is pocketing the difference of more than $120 .. I can understand there are govt. taxes and import duties but a little over 40 percent price is just too much to ask for.

I've seen this is what going on for years. Is this govt. tax or the distributor / importers are tagging it with such hefty price tag ?

So much for Digital India .... I can get one of course but what's the point in paying those ~$120 extra. There's no chip shortage or anything like this for atleast for Alder Lake platform but still here the pricing is so much I think there's some cartel is there behind the scene.

Not only is government charging taxes, sellers and distributors are also creating shortages to increase prices. It has literally come down to what happened once with onions.

RumbaMon19 said:
Not only is government charging taxes, sellers and distributors are also creating shortages to increase prices. It has literally come down to what happened once with onions.

yes, I also think there is a cartel behind this.

If a $300 CPU is selling for 30k here, it is an ok pricing. Add import duties & GST here. In USA, you have to pay a sales tax for the state based on delivery location (say even 5% adds $15). Do not consider the sale prices in US as these stuff sell a lot more there.

But during my recent hunt for PC parts, I indeed observed a shortage in i5 12600K/KF. Apparently, it's in high demand as it is overclockable & something like even 5GHz all core OC on P cores provides good results, esp in games.

I won't say this pricing is anything extreme. New parts takes a few months to settle in prices here. Because of demand of i5 12600K, I have seen price of i7 12700K drop from 42k to 38k with some sellers. When I was searching for i5 12400, some shops were suggesting i7 12700KF

omega44-xt said:
If a $300 CPU is selling for 30k here, it is an ok pricing. Add import duties & GST here. In USA, you have to pay a sales tax for the state based on delivery location (say even 5% adds $15). Do not consider the sale prices in US as these stuff sell a lot more there.

But during my recent hunt for PC parts, I indeed observed a shortage in i5 12600K/KF. Apparently, it's in high demand as it is overclockable & something like even 5GHz all core OC on P cores provides good results, esp in games.

I won't say this pricing is anything extreme. New parts takes a few months to settle in prices here. Because of demand of i5 12600K, I have seen price of i7 12700K drop from 42k to 38k with some sellers. When I was searching for i5 12400, some shops were suggesting i7 12700KF

The cpus available in USA are also imported .. are not they ? I don;'t know exatcly about USA pricing but the price shown on amazon / newegg is all inclusive for US customers or I'm missing something here ?

My question was who controlls the price of the pc parts here ... I've seen price of Rs 16000 on processor selling at ~5k imported and distributed by Ingram Micro ? Do importers set MRP as they wish and retail shops sell those units at under mrp at any price they can ?

topgear said:
The cpus available in USA are also imported .. are not they ? I don;'t know exatcly about USA pricing but the price shown on amazon / newegg is all inclusive for US customers or I'm missing something here ?

My question was who controlls the price of the pc parts here ... I've seen price of Rs 16000 on processor selling at ~5k imported and distributed by Ingram Micro ? Do importers set MRP as they wish and retail shops sell those units at under mrp at any price they can ?

Their import duties are lower than India & even centre's tax (if any) is added in price. But state tax varies, usually 5%. As I said, say you buy it from amazon, based on your delivery state, your state tax gets added.

Let's say a $180 CPU like i5 12400 is 17k in India vs 13.5k on direct conversion. So I don't think there's any legit way to get it at 6-7k as you say as a consumer.

omega44-xt said:
Their import duties are lower than India & even centre's tax (if any) is added in price. But state tax varies, usually 5%. As I said, say you buy it from amazon, based on your delivery state, your state tax gets added.

Let's say a $180 CPU like i5 12400 is 17k in India vs 13.5k on direct conversion. So I don't think there's any legit way to get it at 6-7k as you say as a consumer.

No I'm not talking about evading govt. taxes ... I'm against distributors / importers putting any MRP / MSRP they like on the label and helping those retail shops selling at whatever price they like.

As far as I know govt. charges only 18% IGST on imported processors ... if states charge the same amount then there's some rationale behind the ~40 price hike but still I feel like the distributors are behind this.

topgear said:
No I'm not talking about evading govt. taxes ... I'm against distributors / importers putting any MRP / MSRP they like on the label and helping those retail shops selling at whatever price they like.

As far as I know govt. charges only 18% IGST on imported processors ... if states charge the same amount then there's some rationale behind the ~40 price hike but still I feel like the distributors are behind this.

Oh yes, distributors are definitely behind this. Have no doubt in that.

Customs surprisingly charges NIL duty on computer parts. IGST payable is 18%. But it is the retailers who make high margin selling at inflated prices. Even Chandni Chowk which used to be my preferred destination for pc components a decade ago has managed to make a cartel and sell goods at realy high prices. Previously some shops gave competitive prices over large ones like Supreme/Vedant. But now all of them talk over phone/whatsapp and refuse to lower the price. Most items are available cheaper online now through discounts/offers. My most preferred mode of buying pc parts is online sellers on facebook now.

mitraark said:
Customs surprisingly charges NIL duty on computer parts. IGST payable is 18%. But it is the retailers who make high margin selling at inflated prices. Even Chandni Chowk which used to be my preferred destination for pc components a decade ago has managed to make a cartel and sell goods at realy high prices. Previously some shops gave competitive prices over large ones like Supreme/Vedant. But now all of them talk over phone/whatsapp and refuse to lower the price. Most items are available cheaper online now through discounts/offers. My most preferred mode of buying pc parts is online sellers on facebook now.

Any specific seller name you can mention.

topgear said:
Any specific seller name you can mention.

Check verified sellers of this group:
AkExtacY - Cheapest PC Parts Marketplace

I have been a part of it for more than 1.5 years now. Some of them provide great deals at times, like Yash Patel was recently selling i5 12600K for 26.7k. Shipping takes time though.

topgear said:
Any specific seller name you can mention.

Some guy named Yash Patel. Bought my GPU from him. His CPU prices are unbeatable. Packaging and shipping is also very good. Returns are also done smoothly. Check Facebook groups like Zoukart, cheapest pc builds, dank gaming community.

mitraark said:
Some guy named Yash Patel. Bought my GPU from him. His CPU prices are unbeatable. Packaging and shipping is also very good. Returns are also done smoothly. Check Facebook groups like Zoukart, cheapest pc builds, dank gaming community.

Edit: Honestly didn't see Yash Patel already mentioned above :grin:

mitraark said:
Edit: Honestly didn't see Yash Patel already mentioned above

Some of his deals are really great

omega44-xt said:
Some of his deals are really great

This guy is selling at very good prices just like you said.
Check this thread:*www.facebook.com/groups/1912531715688027/user/1353320764

Thanks guys for sharing such great places to find pc components at fair price.

RumbaMon19 said:
Not only is government charging taxes, sellers and distributors are also creating shortages to increase prices. It has literally come down to what happened once with onions.

The government charges 18% GST. The import duty on microprocessors is 0%.