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If you happen to be a startup owner baffled by the mere mention of GST scratching your head in wild
bewilderment, here’s an attempt to break it down for you.
18 percent rise from 15 percent earlier on to produce results with slightly smaller budgets. However, in
the long run, brands will try to negotiate their way into smaller ad-fees, typically in the 12 to 15 percent
range for projects less than one crore.
Advertising spends may witness rise as the growth in India’s GDP is expected to shoot up because of the
efficiency it brings in the system. Single levy and better claim of Input tax credits, which may be invested
back into advertising, will be helpful to many businesses. Digital advertising will reap most of the
benefits in the overall advertising space as it continues to boom.
1. Tough time negotiating with clients: Negotiating with clients might become an irksome task
explaining inclusion or exclusion of tax on the services especially in case of small business enterprises
and start ups. Analysts say that markets will need some time to adjust to the GST implementation
process, which could partially hurt corporate earnings in the short term but will boost earnings over the
2 .A slight change from the previous system: On the contrary to the popular belief, GST is not entirely a game changer. The launch of GST was marked by a historic midnight (30 June – 1 July) session of both
the houses of parliament convened at the Central Hall of the Parliament. Though the session was
attended by high-profile guests from the business and the entertainment industry including Ratan Tata,
it was boycotted by the opposition due to the predicted problems that it was bound to lead to for the
middle and lower class Indians. But GST has only made a slight change in the previous system.
3. Increased efficacy and efficiency: The advent of GST has brought the transparency to the
transactions thus increased efficacy and efficiency by scouring away all the hustles. Earlier it was a
burden with high procedural fee due to VAT registration obeying different rules across different states.
4. A little compliance and you are all set: It also demands a little compliance. A small business enterprise or a start up is required to be registered under the GST Act in the state or union territory
from where they operate, if their turnover in a financial year is Rs. 1.5 crore or more. If the turnover is
under 1.5 crores, it still needs to register in case it deals with the clients whose turnover is over 1.5
crores. However, if small suppliers (of goods or services, or both) make an inter-state supply, they must
register, regardless of their turnover.
5. Still find it hard? Don’t worry, just make a call: The government has opened multiple helplines for addressing queries related to the new indirect tax regime. GSTN help desk, entrusted with the task of catering to phone calls from taxpayers and government officials, has said it is receiving calls to the tune of 10,000 a day.
It is also noticeable that there are many optimistic views on the implementation of GST. NO, you are not
going to pay any lesser or more than the previous tax system. GST has just made the tax code simple