In its attempt to have a nation-wide value added tax (VAT) implemented in India, the goods and services tax (GST) bill is sure to impact every sector.
The media and entertainment is no exception to this change, GST will have a major impact across print, television and digital sector as the will get subsumed under the bill.
Under GST, any local body tax or state tax will be available as a credit which will reduce overall costs and eliminate any dual levies of service tax and VAT on transactions. However, media companies will have to pay additional local body tax over and above the one proposed in GST.
Speaking to CNBC-TV18’s Menaka Doshi, Utkarsh Sanghvi of EY said companies could see a rise in compliance costs with the filing of multiple returns across every state they operate.
He further said that compliance and accounting for advertising revenue under GST could prove to be the biggest challenge for media companies.