Impact of gst on digital marketing companies

GST stands for Goods & Services Tax is an indirect tax that has been implemented from 1 July, 2017, which is come as a replacement of different state and center taxes. Now in all India only one GST will be payable on goods & services. With this new policy goods and services are taxed at the following rates, 0%, 5%, 12% and 18%, 0.25% on precious stones and 3% on gold. And 28% GST will be charge on some items like: aerated drinks, luxury cars and tobacco products. According to a survey this is the biggest revolt in tax of Indian history after 70 years of Independence. This GST is ruled by its Council and its Chairman is the Finance Minister of India.

Click to read more: Benefits of GST

 Before GST, all advertisement expense regard as a manufacturing expense and this all matter to sales, tax and VAT. Thus, any single type of input credit is not available which causes lose to advertisers but now 18% of input credit available on taxes. This is the helpful change for advertisers which will dispatch their losses.  Because the input credit is available, service tax is increase by 3% which is now 18%.

 It will reduce advertising cost.  You will get higher exemptions if you are going to start a new business.  You will pay single tax only. GST is a tax which will add on the cost at each phase.