National Journal of Multidisciplinary Research and Development

ISSN: 2455-9040

Vol. 2, Issue 3 (2017)

GST issues with respect to Indian media and entertainment industry

Author(s): Dr. Jayashree, R Kotnal
Abstract: The Indian Media and Entertainment Industry is a sunrise sector with a rapid growth curve. In 2015, the industry grew at 11.76% with a market size of USD 19 billion (INR 1,281 billion). Overall, the industry is expected to grow at Compound Annual Growth Rate (CAGR) of 13.98% till 2018. By 2025, the industry is expected to attain a market size of USD 100 billion (INR 6,743 billion). India is globally the fifth largest media and entertainment market. One of the most-awaited financial reforms, the goods and service tax (GST) bill, was recently passed in the Parliament. There is a lot of speculation about how GST will affect the common man, industries and everyone involved in the process?.
The GST is a single uniform tax on goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages. After the announcement, it was speculated that goods will get cheaper and services will get expensive. The proposed GST module sounds flawless on paper, but in actuality, its efficiency is still unknown. Also, a major fear with the GST module is that it would allow local municipalities to decide the tax rate on movies. But on a general note, the bill would most likely do a lot more good than harm, as it would basically empower both the centre and the states to levy GST.
Pages: 214-217  |  1186 Views  589 Downloads
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