IMPACT OF GST ON MEDIA

A project submitted to
University of Mumbai for partial completion of the degree of
Master in Commerce
Under the Faculty of Commerce

Submitted By
GUPTA RAHUL AVADHESH SAVITA

Under the Guidance of

Prof. AARTI SINGH

PRAHLADRAI DALMIA LIONS COLLEGE

OF COMMERCE & ECONOMICS
SUNDAR NAGAR, S.V.ROAD, MALAD (WEST)
MUMBAI 400 064

May 2020
 Prahladrai Dalmia Lions College of Commerce & Economics
Sunder Nagar, Malad (West), Mumbai, 400 064
ISO 9001:2015 Certified

CERTIFICATE

This is to certify that Mr. GUPTA RAHUL AVADHESH SAVITA has worked
and duly completed his Project Work for the degree of Master in Commerce under
the Faculty of Commerce in the subject of Accountancy and his project is entitled,
“IMPACT OF GST ON MEDIA” under my supervision. I further certify that the
entire work has been done by the learner under the guidance and that no part of it
has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by his personal finding and investigations.

Signature

Prof. AARTI SINGH

Date of Submission:
 DECLARATION

I the undersigned GUPTA RAHUL AVADHESH SAVITA here by, declare that
the work embodied in this project work titled “IMPACT OF GST ON MEDIA”,
forms my own contribution to the research work carried out under the guidance of
Prof. AARTI SINGH is a result of my own research work and his not been
previously submitted to my other University for any other Degree/Diploma to this
or any other University.

Wherever reference has been made to previous works of other, it has been clearly
indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained
and presented in accordance with academic rules and ethical conduct.

Signature

GUPTA RAHUL AVADHESH SAVITA

Certified by

Prof. AARTI SINGH

 INDEX

Chapter Title Page no.

No.
1. Introduction 1
2. Research Methodology 3
3. Classification of Data 4
4. Limitation of Study 6
5. Literature of Review 7
6. History of Mass Media in India 9
7. SWOT Analysis of Media and Entertainment 12
Industry
8. Advantages & Disadvantages of GST on Media 17
9. Overview of Media Industry in India 20
10. Taxes in Media and Entertainment Industry 21
11. GST Rates for Media and Entertainment 27
Industry
12. GST Impact on Media and Entertainment 28
Industry
13. GST Compliances for Media and Entertainment 41
Industry
14. Data Analysis & Interpretation 44
15. Findings 57
16. Suggestion 58
17. Conclusion 59
18. References 60
 ACKNOWLEDGEMENT
To list to who all helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channel and fresh
dimension and completion of project.

I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.

I would like to thank my Principal, Dr. N.N. Pandey and our Vice-Principal
Prof. Subhashini Naikar for providing the necessary facilities required for
completion of this project.

I take this opportunity to thank our Co-ordinator Prof. Pankaj Jain for his moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide Prof.
AARTI SINGH whose guidance and care made the project successful.

I would like to thank my college library for having provided various reference
books and magazines related to my project.

Lastly I would like to thank each and every person directly or indirectly helped
me in the completion of the project, especially my Parents and my peers who
supported me through out of my project.

GUPTA RAHUL AVADHESH SAVITA

 Prahladrai Dalmia Lions College of Commerce & Economics

1.INTRODUCTION

Globally India is the fifth largest media and entertainment market according to a Deloitte report.
With a rapid growth curve, the Indian media and entertainment industry is a growing sector. The
report also stipulated that by 2025 the industry would gain a $100 market.
The service sector contributes over 55% in the Indian economy. Multiple taxations of goods and
services are not viable nor is it desirable. The introduction of GST in India is to reduce the tax
burden on both consumers and companies. Earlier there was each stage in the supply chain was
burdened multiple taxes. Resulting in an unclear end cost and applied tax on the products and
services on sale, this structure of tax was complex. GST managed to combine most of the taxes
into one single tax reducing the overall cost and the burden on the end consumer.

The rate of Entertainment TAX prior to the introduction of GST varied from state to state,
ranging from 15% to 110% depending upon the services, location, type, and other benefits.
Multiple VAT + service tax was included in the entertainment-related services. The VAT and
service tax was charged at 14.5% and 15% respectively. The rate variance was stabilized after
the implementation of GST and now provides a uniform market nationwide, which prevents
arbitrage.

The key challenges from a tax perspective faced by the industry were effective tax rate,
implications for cross-border transactions, managing tax risks, cash-blockage because of high
withholding tax rate and multiple indirect taxes. Many input taxes paid in many transactions
were regarded as tax cost hence not available as credit. Even dual taxes were levied on many
operations as a result of the federal structure of Indirect tax structure.

Under the GST law, media and entertainment services industry is divided into 18% and 28% tax
rate slabs respectively. The 18% GST Rate Slab includes TV and DTH services, theatre, circus,
and classic dance events. The 28% GST Rate Slab is for both firms in cinema halls like movie
tickets, casinos, sports event, amusement park, movie festivals, racing, as well as events

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GST is an indirect tax, which subsumes most of the indirect taxes levied by center and state like
center excise duty, additional excise duty, service tax, center sales tax, countervailing duty and
special additional duty of customs, value added tax/sales tax, entertainment tax, octroi and entry
tax, purchase tax, luxury tax, taxes on lottery, betting and gambling. GST is an indirect tax levied
on goods and services from manufacturer to consumers. Under GST, uniform tax will be levied
on manufacture, sale and consumption of goods and services. GST will be paid only on the
value added at each stage by deducting taxes already paid at each stage so cost for consumers
will be reduced by the input tax credit and the reduction in cascading effect of taxes on taxes.
Canadian model of dual GST system will be implemented by Indian government. There are three
components: Centre Goods and Service Tax (CGST), State Goods and Service Tax(SGST) and
Integrated Goods and Service Tax.

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2.Research Methodology :

Research is a logical and systematic search for new and useful information on a particular topic.
Research methodology is a systematic way to solve a problem. It is a science of studying how
research is to be carried out. Essentially, the procedures by which researchers go about their
work of describing , explaining and predicting phenomenon are called research methodology.

About my Research Problem :

The present research is exploratory in nature. Since GST is a new phenomenon in India, there are
hardly any studies in this area. Specially there is a huge gap of empirical and behavior studies on
GST in India. The study tries to find the significance of popular perception regarding GST.

Need of Study :

The Need of study have to fill the gap that has identified in the privious researchers. Under this
study We know that how much level of understanding the GST and Perception towards GSTas
well as traders , taxpayers concerned by GST.

Scope of the Study :

This study is conducted to find out the impact of gst on media and to know about their
expenditure pattern and the variation. The respondents selected are of mixed group which will
give wider difference in understanding. The scope of the study is limited only to the concerned
area of study which cannot be justified for any other place.

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3.Classification of Data :

The correct information is the key to success. Data information is of two types ; Primary Data
and Secondary Data. Primary data is information collected by researcher or person himself where
is secondary data is collected by other but utilized or used by researcher . Data can be classified
under two categories depending upon source utilized . These categories are :

➢ PRIMARY DATA
➢ SECONDARY DATA

Primary Data : The study is largely based on the primary data which has been collected through
the structured Questionnaire Method.

Questionnaire:-
The data has been collected by administering a structured schedule of questions. The questions
are generally framed by 5 point Likert Scale and answers by respondents in form of Agree , Dis
agree , Neutral, Strongly Agree and Strongly dis Agree. The Questionnaire have been prepared
for study of impact of GST on media. For the present study purpose questionnaire method is
used to collect the primary data . This questionnaire is self administrated questionnaire and it is
divided into two sections – Section A and Section B .
 Section A consist the questions regarding Personal Information . For Eg. Name , Age ,
Gender , Qualification , Martial Status , Occupation .
 Section B Consist the questions which fulfill the research objectives and it contains 20
Questions.

Secondary Data :
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This type of data has already been collected by someone else and has already passed through
statistical process. This type of data has been collected from the following resources :
➢ Sources of Collection of Secondary Data
➢ Internet
➢ Books
➢ Journal
➢ Thesis.
➢ News Papers
➢ Govt Gazettes.
➢ Magazines etc.
For this study Primary Data and Secondary data both has been used for research topic.

RESEARCH INSTRUMENTS :

➢ QUESTIONNAIRE

A questionnaire is a research instrument consisting of a series of questions and other prompts for
the purpose of gathering information from respondents . Although they are often designed for
Statistical Analysis of the responses.

RESEARCH PLAN :

Data Source Primary Data

Research Approach Survey
Research Instrument Questionnaire
Method of Contact Personal
Sample Size 50 Respondents

4.Limitations of Study :

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This study too has its limitations that limits the applicability and validity of study . The
limitations are below
1. The sample size was small and cannot be applied to the entire population .
2. GST is new launched tax system so some complications are faced by the peoples.

OBJECTIVES OF THE STUDY.

 To analyze the tax rates before GST and after GST in the entertainment industry of India.
 To understand the overview of media industry in India.
 To study the impact of GST rates in the entertainment industry and whether it is
becoming expensive under GST or not.
 The foremost objective of GST is to create a common market with uniform tax rate in
India. (One Nation, One Tax, One Market)
 To eliminate the cascading effect of taxes, GST allows set-off of prior taxes for the same
transactions as input tax credit.
 To boost Indian exports, the GST already collected on the inputs will be refunded and
thus there will be no tax on all exports.
 To increase the tax base by bringing more number of tax payers and increase tax revenue.
 To simplify tax return procedures through common forms and avoidance of visiting tax
departments.
 To provide online facilities for payment of taxes and submission of forms. Goods and
Services Network (GSTN), a robust Information Technology system has been created for
the operation of GST.

5.Literature of Review

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 The proposed GST is likely to change the whole scenario of current indirect tax system. It
is considered as biggest tax reform since 1947. Currently, in India complicated indirect
tax system is followed with imbrication of taxes imposed by unions and states separately.
GST will unify all the indirect taxes under as umbrella and will create a smooth national
market. Expert says that GST will help the economy to grow in more efficient manner by
improving the tax collection is it will disrupt all the tax barriers between states and
integrate country by single tax rate.
 GST was first introduced by France in 1954 and now it is followed by 140 countries .
Most of the countries followed unified GST while some countries like Brazil , Canada
follow a dual GST system where tax imposed by central and state both. In India also dual
system of GST is proposed including CGST and SGST .
 According to Tan and Chin-Fat (2000) , Malaysian understanding regarding GST was
still low. Based on study conducted by Djawadi and Fahr (2013) pointed out that
knowledge about tax is important to increase the thrust of authorities and also the
citizens.
 Tulu (2007) , indicate that other factors such as taxpayers’ attitude or morale found to be
the result of lack of awareness has found to have little impact on taxpayers’ attitude
towards taxation. A lot of individuals or taxpayers might want to comply in full with the
tax systems, but are unable to do so because they are not aware of and lack of
understanding their full obligations. Even they understand their obligations they may not
know how to comply with it because of there is no two way communications between the
authorities and taxpayers. Dup (2014) claimed that the ability of taxpayers to comply
with the tax laws have a strong relationship with tax awareness.
 Ehtisham Ahmed and Satya Poddar (2009) studied , “ Goods and service tax reforms and
intergovernmental consideration in India ” and found that GST introduction will provide
implies and transparent tax system with increase in output and productivity of economy
in India. But the benefits of GST are critically dependent on rational design of GST.
 According to Palil et al. (2010) , Public awareness towards GST is low can happen due to

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 introduction of GST especially in the early years such as lack of familiarity with the new
system. There are several factors that discouraged customers from accepting GST
implementation in Malaysia and the most important factor among all is a fear of price
increase and will cause the inflation.
 (Saira et al, 2010) , Based on the history of the implementation by the other countries
around the world, most of the countries received a positive impact in terms of their
revenue, despite the success of GST implementation the Malaysian citizens still feel
uncertain with the GST, (Saira et al, 2010). The findings from the study showed that the
majority of Malaysians not convinced with the GST system ,
 Dr. R. Vasanthagopal (2011) , Conducted a study on , “ GST in India : A big leap in the
Indirect Taxation System” and concluded that switching to seamless GST from current
complicated indirect tax system in India will be positive step in becoming Indian
economy . Success of GST will lead to its acceptance by more than 130 countries in
world and a new preferred form of Indirect Tax System in Asia also [2]
 According to Torgler (2011) , tax morale is important to taxpayer awareness. On the
other hand, research by Tekeli (2011) using multiple regression analysis show that tax
morale has insignificant relationship on tax awareness. A Tekeli (2011) conclusion is
supported study by regarding cause and consequences of tax morale.
 Research by Mustapha and Palil (2011) , stated that the influence of compliance behavior
towards individuals’ awareness has been proven in various researches. From the findings
of Razak and Adafula (2013); Santi (2012) they found that taxpayers’ awareness is
significantly associated with tax compliance and this is also supported by study Jatmiko
(2006).

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6.History of Mass Media in India

Indian Media consist of several different types of communications: television, radio, cinema,
newspapers, magazines, and Internet-based Web sites/portals. Indian media was active since the
late 18th century with print media started in 1780, radio broadcasting initiated in 1927, and the
screening of Auguste and Louis Lumière moving pictures in Bombay initiated during the July of
1895. It is among the oldest and largest media of the world. Media in India has been free and
independent throughout most of its history, even before establishment of Indian empire by
Ashoka the Great on the foundation of righteousness, openness, morality and spirituality. The
period of emergency (1975–1977), declared by Prime Minister Indira Gandhi, was the brief
period when India's media was faced with potential government retribution.

The country consumed 99 million newspaper copies as of 2007 - making it the second largest
market in the world for newspapers. By 2009, India had a total of 81,000,000 Internet users -
comprising 7.0% of the country's population, and 7,570,000 people in India also had access to
broadband Internet as of 2010 - making it the 11th largest country in the world in terms of
broadband Internet users. As of 2009, India is among the 4th largest television broadcast stations
in the world with nearly 1,400 stations. Snapshot of evolution of media in India is as below:

Mass media in India - Bengal: The Bengal Gazette was started by James Augustus Hicky in
1780. The Gazette, a two-sheet newspaper, specialised in writing on the private lives of the
Sahibs of the Company. He dared even to mount scurrillious attacks on the Governor-General,
Warren Hastings', wife, which soon landed "the late printer to the Honourable Company" in
trouble.

Hicky was sentenced to a 4 months jail term and Rs.500 fine, which did not deter him. After a
bitter attack on the Governor-General and the Chief Justice, Hicky was sentenced to one year in
prison and fined Rs.5,000, which finally drove him to penury. These were the first tentative steps
of journalism in India. Mass media in India - Calcutta: B.Messink and Peter Reed were pliant
publishers of the India Gazette, unlike their infamous predecessor. The colonial establishment
started the Calcutta Gazette. It was followed by another private initiative the Bengal Journal. The

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Oriental Magazine of Calcutta Amusement, a monthly magazine made it four weekly

newspapers and one monthly magazine published from Calcutta, now Kolkata.

Mass media in India - Madras Chennai: The Madras Courier was started in 1785 in the southern
stronghold of Madras, which is now called Chennai. Richard Johnson, its founder, was a
government printer. Madras got its second newspaper when, in 1791, Hugh Boyd, who was the
editor of the Courier quit and founded the Hurkaru. Tragically for the paper, it ceased publication
when Boyd passed away within a year of its founding.

It was only in 1795 that competitors to the Courier emerged with the founding of the Madras
Gazette followed by the India Herald. The latter was an "unauthorised" publication, which led to
the deportation of its founder Humphreys. The Madras Courier was designated the purveyor of
official information in the Presidency. In 1878, The Hindu was founded, and played a vital role
in promoting the cause of Indian independence from the colonial yoke. It's founder, Kasturi
Ranga Iyengar, was a lawyer, and his son, K Srinivasan assumed editorship of this pioneering
newspaper during for the first half of the 20th century. Today this paper enjoys the highest
circulation in South India, and is among the top five nationally

Mass media in India - Bombay: Bombay, now Mumbai, surprisingly was a late starter - The
Bombay Herald came into existence in 1789. Significantly, a year later a paper called the Courier
started carrying advertisements in Gujarati.

The first media merger of sorts: The Bombay Gazette, which was started in 1791, merged with
the Bombay Herald the following year. Like the Madras Courier, this new entity was recognised
as the publication to carry "official notifications and advertisements". 'A Chronicle of Media and
the State', by Jeebesh Bagchi in the Sarai Reader 2001 is a handy timeline on the role of the state
in the development of media in India for more than a century.

Bagchi divides the timeline into three 'ages'. The Age of Formulation, which starts with the
Indian Telegraph Act in 1885 and ends with the Report of the Sub-Committee on
Communication, National Planning Committee in 1948.

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State of Modern Mass Media: After Independence, the Indian media had evolved, realigned and
reinvented itself to a large extent, and now-a-days you can see a clear division between
commercial and aesthetic expressions of our Media Giants, sometimes arbitrary. Modern mass
communication media is poles apart relative to any aesthetic feeling: vulgarity and arrogance
nullify any hypothesis of meaning. Aesthetics is the more powerful answer to violence of
modern mass communication. Today’s mass communication media seems to elude every
determination, exposing its message to all possible variants, it finishes to abolish it. Goal of mass
communication is always the unbiased dissipation of any content, and the world wide web is no
exception, and surely is the most efficient media tool.

It’s also very interesting to observe how the old media are becoming more and more permeable
to blogs and D.I.Y. information. This phenomenon is not due to a fascination in more democratic
information sources. On the contrary - the pressure is rising due to the growth of the eyes’
(cameras and new digital devices) that are watching the same events that mainstream media are
reporting to us: the possibility of being uncovered are too many and broadcast journalists are
forced to tell the truth (or at least a plausible version of it). As a consequence, blogs have become
the major source of news and information about many global affairs. We also have to consider
that bloggers are often the only real journalists, as they (at their own risk) provide independent
news in countries where the mainstream media is censored, biased or under control.

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7.SWOT ANALYSIS OF MEDIA & ENTERTAINMENT INDUSTRY

TELEVISION INDUSTRY Television is one of the major mass media of India and is a huge
industry having thousands of programs in all the states of India. In terms of no. of viewers, 1st-
china 2nd-USA 3rd-India There are total 823 channels of which 184 are pay channels

SWOT ANALYSIS:

STRENGTHS:

 The industry like television have a large customer base.

 The low cost of production and high revenues ensure a good return on investment for
Indian Television industry.
 Change in the lifestyle and spending patterns of the Indian masses on entertainment.
 Remains a favourite media source for most of the consumers irrespective of age domicile:
92% of the respondents rank ‘watching TV’ as their top media source
 94% respondents consider ‘advertising on TV’ as the most influential media source to
impact their buying decisions.
 Ex: No movie in Bollywood now-a-days strikes the bigscreen without promoting of
television.
 Is equipped with the power to influence people, their beliefs and their opinions.
 Being a visual medium, its impact transcends the social & educational background of its
viewers.

WEAKNESSES:

 In current social scenario, weakness for a TV industry may be its inability to stick to
ethical standards in order to face tough competition. Ex: no. of murders seen on TV by
the time an average child finishes elementary school 8000. no. of violent acts seen on TV
by age 18 are 2,00,000.
 Slow momentum in digitalization. Cables are still in use.( new deadline 31st December
2014)
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 Lack of penetration in lower economic classes.

OPPORTUNITIES:

 Increasing interest of global investors in Indian Television Industry.

 The smallscreen has produced numerous celebrities, some even attaining the national
fame. Ex: TV actress Drashti Dhami beats Deepika Padukone(one of the leading
Bollywood celebrities) in “Top 25 Popular Asian Women” context 2014.
 The high technological innovation which is happening everyday also presents a good
opportunity for the media industry to utilize the latest technology.
 The media penetration is poor among the poorer sections of the society. This offers
opportunities for expansion in the area.
 TV soaps are extremely popular with housewives as well as working women.
Approximately half of all Indian households own a television
 Rise in the viewership & the advertising expenditure
 Total television viewership of 415 million is amongst the world’s highest with nearly 15-
16 Television companies beaming programmers to India.

THREATS:

 Increasing interest of consumers in digital media

 Digital media advertising revenue grew by 17% in 2013 to $43billion.
 According to sources “ digital media is quickly surpassing the National Television
Advertising and will surpass total Television media by 2018”.

RADIO INDUSTRY :Radio broadcasting in India started in British India in 1923 with the
Radio Club of Bombay. All India Radio (AIR) was established in 1936 which is one of the
largest radio networks in the world including the AIR FM  Some Popular Radio stations:
Radio Mirchi Radio City Red FM Big FM Fever Radio One

STRENGTHS:

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 The success of private FM stations, and reveals that radio listenership habits have
changed considerably; not only are listeners tuning into it more often but also sticking to
radio for longer hours everyday.
 The advertisers, who would depend on pamphlets, brochures or ads in local supplements
of newspapers, are now opting for radio as medium.
 Radio since, a background medium, people can listen to radio anytime and anywhere they
want. It is also a free medium.
 90% of India has access to radio which is unmatched by any other media.
 Radio also reaches to uneducated village folk who do not read print publications. At the
places where the literacy rates are low where people hardly read newspapers and radio is
the only medium that they can understand. Since they cannot afford a TV set, radio is
more popular.
 Radio is the least cost medium and it helps to reach mass audience with various
backgrounds.
 Other media and advertisers also use radio as medium for brand recall.

WEAKNESSES:

 One of the major drawback with radio is that there is very less differentiation in the
programs that are aired.
 Ex: most of the radio stations play music, much of Hindi film songs.
 Radio offers only audio. There’s no visual thing. This is a boon as well as curse for radio
industry. Because, many advertisers think that medium without visuals can play little role
in their advertising plans.
 Increase in listeners but no proportionate increase in advertisement revenue

OPPORTUNITIES:

 Launching a radio station with 24-hour news channel.

 FDI in FM radio channels had increased to 26% from 20%.
 Govt. has cut license fee to 1/10th of the previous amount.
 Tie-ups with railway authority for playing the FM in train and in bus.

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 The new radio stations which will come in future they can have venture with the college
or university campuses. And can play their station which will exclusively provide with
the information relating to that university/college campus.
 Privatization of Radio FM is expected to add 839 new radio stations in 294 cities.
 With the coming of the many more new players in the radio industry each channels can
position themselves quite different from others, like, if some station is targeting the
health conscious people then their programming strategy will vary accordingly. And then
it is easier for the advertisers also to decide on which channel to advertise.
 Allowing private FM players to start news and current affairs programmes.

THREATS:

 The biggest threat to private radio industry players is ALL INDIA RADIO. AIR is the
biggest player in India because of its reach, low charges, government channel.
 Because of the new government policies there will be more number of stations and then
competition will also increase. This is one of the biggest threats it faces. With no
particular differentiation in the music.

PRINT INDUSTRY:

STRENGTHS:

 Overall industry size is 9%

 Loyal customers are still preferring newspaper as media
 Rise in literacy in past decade has led to rise of regional newspapers.
 Most of the newspapers has an online presence and a growing view counts on their
portals.
 Availability of area specific newspapers.
 Profound Knowledge and experience of print industry in how to target their audience.
 Growth of regional papers give advertisers access to localized populations, which is
difficult to do via national broadcast media.

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WEAKNESSES:

 Short term contracts with advertisers is limiting investments and innovation.

 Inability of publishing companies to develop new successful business models.
 Property rights(in context publishing) is not always secured properly.
 Heavy investments to keep both printed as well as online versions.
 Attracting young reader’s remains a challenge.

OPPORTUNITIES:

 Digitization leads to lower printing costs and may enhance printing demand in shortrun.
 Coping up with new technological advancements such as development of multimedia
content & multimedia design & distribution due to shift in media consumption.
 Encouraging young writers and creative columns for youth segment.

THREATS:

 Environmental regulation regarding CO2, inks, and paper use.

 Stronger competition is being faced by print media.
 Growing environmental awareness with the public, depletion of ozone layer due to CFC’s
and depleting forest areas.
 Growing importance of electronic delivery of media content, causing substitution of
printed media by Internet and mobile devices.
 Major threat of profitability due to high cost of publishing a newspaper. It is roughly 40-
50% of total cost.
 Shift in focus to digital media

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8.Advantages of GST and Media

 Clarity on Lease of Film/television content rights

In the case of a certain lease of film/television content rights, there was a controversy as to
whether the transactions were that of a sale of goods or providing services. If the transactions
were considered as a sale of goods then VAT would be applicable else, Service Tax would have
been applicable by considering under the ambit of service. Therefore, the transactions triggered
turf war between the two Acts. As a result, in many cases, the transactions were made liable to
VAT as well as Service Tax, thereby increasing the burden of taxes. In the state of Maharashtra,
such burden was at 21% (15% Service Tax and 6% VAT).

Now with the advent of GST, the transactions will be regarded as a supply of services, which
will attract a rate of 12% as applicable to temporary or permanent transfer or permit the use or
enjoyment of copy rights.

 Entertainment Tax Subsumed in GST

Before GST regime, the tickets of films used to attract Entertainment Tax based on the State
laws. There was no set off provided for the Entertainment Tax against Service Tax or VAT paid
by the distributor and so the levies were cumulative. The ultimate customer used to bear the
burden of taxes. With the introduction of GST, the entertainment tax levied by the State
Government is subsumed , making consolidated tax rate.

 Input Tax credit for Distributors

In a case of film distributors, they will be able to take benefit of ITC of GST paid by producers
and similarly, the theatre owners will be able to take ITC of GST paid by the distributors. The
rate of tax payable by the ultimate customers of the industry, being 28% on the tickets purchased,
the ITC is likely to be fully absorbed.

 Elimination of dual tax

Another advantage of GST will be the elimination of dual tax levies of service tax and VAT on
various transactions that occur.
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Disadvantages of GST on Media

 Multiple registrations
Multiple registrations also complicate the transfer of services among offices of the same
company. Example: Imagine a company headquartered in Mumbai releases an ad that ENIL
carries across its 22 stations across India. In the pre- GST era, ENIL would have raised one bill
from Mumbai – the city where ENIL is headquartered. However, now each station will raise a
bill on the Mumbai office, which, in turn, will raise one on the client.

This creates more than just procedural issues. If the ad was worth Rs 1 crore, how much was
apportioned to each station was a matter of internal accounting before GST. Now the tax
authorities could potentially question why Chennai or Delhi has billed, say, only Rs 10 lakh.

Typically, apportioning is done based on estimates of market size, impact, play-out time and a
whole host of variables that the taxman is not aware of. This could potentially lead to
unnecessary litigation.

 Power provided to Municipality to Tax on entertainment and amusement

Under GST regime, an authority is given to a Panchayat /Municipality /Regional council/ District
councils to levy and collect taxes on entertainment and amusement. This appears to be a
backdoor entry of entertainment tax. As of now, such taxes are levied only in a few States.
Considering the fact that most of the States are keen on augmenting their resources to cover up
their budgetary deficit, many of the States are likely to follow the suit. If that happens, the likely
gains, which the industry may make by GST, will be easily wiped out and the industry may
struggle under the heavy burden of a tax. Such tax is not entitled to get adjusted against GST
paid and that can become an additional levy. The State of Tamilnadu has levied such tax @ 30%
on film tickets, which resulted in a strike by the film distributors and the theatre owners as the
tax burden becomes heavier than before.

 Theatrical rights of films taxable under GST

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The theatrical rights of films were not liable for VAT or Service Tax. Now with GST triggering
in, sale or lease of all the rights will attract GST. To that extent, the burden on the industry will
increase. The level of credit will depend on the inputs of goods and services used by the
producers and whether they are being acquired from the registered dealer. Certain costs which
constitute a major element of cost for production of films and television content such as food,
beverages, outdoor catering, vehicle hire etc. will not be entitled to ITC due to specific
provisions.

 Lapse of Cenvat Credit

One more important issue is that in a case of a film producer or a television content producer,
GST rate applicable for films or television content is 12%. The major portion of input in a film
or a TV serial is services given by artists, technicians and other persons and various rentals paid
which attract 18% GST. So major inputs are received with 18% GST credit but the output is
charged at 12% GST rate. In a case of many films, which do not fair well or could not be
exploited to the extent of a breakeven level, Input Tax Credit of GST paid will remain unutilised
and may have to be written off. Similarly, in a case of TV serials, which cannot be sold at a
remunerative price, ITC may remain unutilised. To that extent, the profitability of the industry
may get hampered though a preferential GST rate of 12% has been notified.

 High Taxes on amusement and entertainment parks

A major cause of concern for various amusement and entertainment parks is that the rate
applicable to them has been notified at 28%. This rate is quite stiff and it equates to the rate
applicable to the services offered by casinos, race courses etc. It may not be appropriate to
consider the entertainment parks, where generally a family goes for entertainment; with casinos,
race courses etc.

 Non Availability of Cenvat Credit

The production of feature films and TV serials entails shooting for late hours and at various
locations. It is a common practice in the industry to serve food and beverages to staff and others
present, give outdoor catering services at various shooting locations and provide a mode of
conveyance. These expenses constitute the substantial cost of production but GST paid on the
same will not be allowed as ITC.

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 States not entitled to grant tax exemption Status

It has been a practice of many States to give an exemption for regional films as well as films
spreading positive messages to Society to give relief of entertainment tax or to grant an
exemption for a period. This power of the State will get abolished as GST will be levied and the
State may not be able to tamper with to give relief to such films.

9.OVERVIEW OF MEDIA INDUSTRY IN INDIA:

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 1).
Overall, the industry is expected to grow at 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.

The key sub sectors of the Media and Entertainment industry are Telivision, Print, Films, Sports,
Music, Radio, Digital Advertising, Out of home advertising, Animation and VFX and Gaming.
Television, print, and films are the three largest sub-sectors in India. Key demographics of the
Indian Media and entertainment industry are outlined below:

 India is the world’s second largest television market with 168 million television
households and 890 television channels approximately (including 400 news and current
affairs channels approximately).

 India has the world’s largest film industry in terms of tickets sold and the number of films
produced (more than 1,250 films are produced yearly in more than 20 languages).

 Globally, India has the biggest newspaper market with more than 100 million copies sold
daily and more than 100,000 registered newspapers.

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10.TAXES IN MEDIA AND ENTERTAINMENT INDUSTRY

The Media and Entertainment Industry (‘M & E industry’) is one of the classic examples of an
industry that has been impacted by the federal structure of taxation in India. Some of the key
challenges pertain to the multiplicity of taxes, lack of delineation between subjects taxed by the
Centre and State, compliance costs in terms of both Central and State levies, and blockage of
credits(Shah and Kalyani, 2017).The impact of GST on the entertainment industry will vary from
state to state. For that, we need to know how taxes were levied before GST and how is it now.
The media and entertainment (M&E) industry in India has outperformed expectations, and is
amongst the fastest growing sectors. With the expansion of the economy, the sector accelerates
its own growth.
The sector spreads into big and small screens, media, events, exhibitions, amusement facilities
and gaming zones, with varied combinations of offline and online delivery.

One of the major changes has been the subsuming of Entertainment Tax under GST. Earlier,
prior to GST, the rate of Entertainment Tax for the film industry varied from state to state,
ranging from 15% to 110%. Introduction of GST has stabilised the rate variance and provides a
uniform market across the nation. A GST of 18% is levied on movie tickets up to 100 INR, and
28% on movie tickets costing more than 100 INR. The uniform rate across the nation prevents
the
arbitrage. Further, the prices of DTH and cable services came down after the implementation of
GST. However, sporting events such as IPL attract a 28% GST levy, which makes them costly.

Film industry
Cinema has long been synonymous with the M&E sector in India. There is a long value chain in
the industry, and indirect tax being a transaction tax impacts the industry at every stage. With the
advent of GST, things are expected to become relatively simpler for the entertainment industry
as it would be subject to only one tax and permissible local body taxes. The GST legislation
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classifies access to cinema as a luxury and puts it under the highest tax rate of 28%. Given the
socioeconomic developments round the world, the cinema
may not really be a luxury, at least in metro cities.

BEFORE GST:

Before GST, the entertainment tax was levied by states and the rates range from 0 to 110%, with
an average of 30%.Entertainment tax falls in List 2 of the Seventh Schedule of the Constitution
of India and is exclusively reserved as a revenue source for the state governments. Historically,
before India acquired independence, the British government imposed heavy taxes on the events
of amusements and entertainment, where a large gathering of Indians could have caused
rebellion or mutiny.After independence, old enactments continued and there has been no revision
or repeal of these acts.

This source of revenue has grown with the advent of pay television services in India. Since,
entertainment is being provided through the services such as broadcasting services, DTH
Services, Pay TV Services, cable services, etc. The component of entertainment is intrinsically
intertwined in the transaction of service, that it cannot be separated from the whole transaction.
Given the nature of transaction of service, it is being subjected to tax by the Union and the State
governments both.

The fiscal principle underlying article 246 of the constitution of India separates the sources of
taxation for the Union and the States and also maintains the exclusivity. This article also
provides that in case of conflict between the powers of Union and the States, the Union power to
tax shall supersede the power of the State to levy tax on the taxable event or in relation to the
subject or object of taxation. Entertainment tax structure in India varies across states and is the
highest in Uttar Pradesh at 60 per cent. In Maharashtra, entertainment tax was reduced by five
per cent in 2005 and now stands at 45 per cent. There is no tax for Marathi films in Maharashtra,
and in Tamil Nadu, Tamil films are tax free if they have a Tamil title and a U certificate from the
Censor Board. Failing any of these, films are imposed a 15% tax. The entertainment industry was
India is facing the challenge of double taxation on such transactions.

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A list of the entertainment tax generally charged by states:

 Andhra Pradesh - 20% (15% for Telugu Films)

 Assam, Himachal Pradesh, Jammu & Kashmir, Rajasthan, Punjab and Uttaranchal (Nil)
 Bihar - 50.00%
 Delhi- 20.00%
 Gujarat -20.00% (Nil for Gujrati Films)
 Haryana -30.00%
 Jharkhand -110% (Nil for Jharkhand Films)
 Karnataka -30% (Nil for Kannada Films)
 Kerala- 30.00%
 Madhya Pradesh -20.00%
 Maharashtra -45% (Nil for Marathi Films)
 Orissa -25.00%
 Tamil Nadu -15% (Nil for Tamil Films)
 Uttar Pradesh -30% to 40%
 West Bengal- 30% (2% for Bengali Films)

AFTER GST:
The GST regime subsumes following taxes and duties, presently applicable to the M & E
industry:

CENTRE STATE

Central Excise duty State Value Added Tax

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Service Tax Entertainment Tax

Central Sales Tax Entry Tax
Countervailing Duty
(CVD)
Special Additional
Duty (SAD)
The above said taxes are subsumed under GST. Because of multiplicity of taxes on the same
transaction without full credit of taxes paid on the earlier leg of the supply chain, there is a
cascading effect of these in this industry.

Different Types of Media

The goal of media is to convey an advertising message to the audience through the most
appropriate media channel for their product.

In general, you can classify media in three main categories.

Print Media-This type of news media used to be the only way of delivering information to the
public. For the generations of the 80s and 90s, print media was the only media of entertain.
People relied on newspapers and magazines to learn everything, from recipes and entertainment
news to important information about the country or the world. Print media includes:

Newspapers – printed and distributed on a daily or weekly basis. They include news related to
sports, politics, technology, science, local news, national news, international news, birth notices,
as well as entertainment news related to fashion, celebrities, and movies. Today’s parents grew
up with this type of printed media.

Magazines – printed on a weekly, monthly, quarterly, or annual basis. It contains information

about finance, food, lifestyle, fashion, sports, etc.

Books – focused on a particular topic or subject, giving the reader a chance to spread their
knowledge about their favorite topic.

Banners – used to advertise a company’s services and products, hung on easily-noticed sights to
attract people’s attention.
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Billboards – huge advertisements created with the help of computers. Their goal is to attract
people passing by.

Brochures – a type of booklet that includes everything about one company – its products,
services, terms and conditions, contact details, address, etc. They are either distributed with the
newspapers, or hand over to people.

Flyers – used mostly by small companies due to the low cost of advertising. They contain the
basic information about a company, their name, logo, service or product, and contact
information, and they are distributed in public areas.

Broadcasting Media

Broadcasting media includes videos, audios, or written content that provides important or
entertaining information shared by different methods:

Television – in the past, there were a few channels sharing various types of content, whereas
now we have hundreds of TV channels to choose from. Each channel delivers a different type of
content, so you have a separate channel for news, drama, movies, sports, animation, nature,
travel, politics, cartoon, and religion. It’s the number one broadcasting media due to its reach to
the audience.

Radio – uses radio waves to transmit entertaining, informative, and educative content to the
public. Due to its high reach to the audience, radio is widely used for advertising products and
services. Radio is one of the oldest means of entertainment, and today people often hear it to find
out the weather and traffic while commuting.

Movies – film, motion picture, screenplay, moving picture, or movie has world-wide
reachability. It’s the best type of mass media to promote cultures and spread social awareness.
Movies have always played a huge part in the entertainment world.

Internet Media

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Nowadays, we are relying on the Internet to get the news a lot more often than the traditional
news sources. Websites provide information in the form of video, text, and audio. We can even
choose the way we want to receive the news. Types of Internet media include:

Social networks or websites – including Facebook, Instagram, Twitter, YouTube, Tumblr,

LinkedIn, Snapchat, Quora, Reddit, Pinterest, etc. They are user-friendly and widely used by
people around the world. Although we can find any news here, they may be misleading because
of the lack of regulations on the content shared.

Online forums - an online place where we can comment, message, or discuss a particular topic.
Forums allow us to share knowledge with other people with the same interest. That’s why it’s
regarded as the best platform to seek support and assistance.

Podcast – a series of audios focused on a particular topic or theme. We can listen to them on a
computer or a mobile phone. It’s a platform that allows anyone to share their knowledge and
communicate with the world.

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11.GST Rates for Entertainment Industry:

1. Film Producers:
 Non perpetual theatrical rights – 12%
 Sale of Rights (Perpetual) – 12%
 Non perpetual satellite rights – 12%
 In-film placement – 18%
 Non perpetual Music rights – 12%

2. Film Distributors:
 Lease to exhibitors and theatres – 12%
 Theatres – 28% + Local levy

3. TV and Radio channels:

 Lease of programs – 12%
 Artists, Technicians and Directors – 18%
 Amusement Parks – 28%
 Entertainment Events – 28%
 Sports events like IPL – 28%
 Circus, Concerts of classical dance as well as folk dance, theatrical performance
and drama – 18% (exemption up to consideration for admission of Rs. 250 per person)
 Cable TV or DTH Services – 18%

4. Television and other content Producers:

 Outright Sale – 12%

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 Print Media – 5%
 Renting of hoardings – 28%
 Subscription Revenue – 12%

12.GST Impact on Entertainment Industry

Business owners in the entertainment industry are paying GST on entertainment services. The
amusement parks and movie theatres are also liable under State GST. This may be positive or
negative depending upon the states that they are doing business in.
According to an analysis, conducted by the Multiplex Association of India, the impact of GST is
negative in 12 States where the GST rate is 28%, Positive in 7 States and Neutral in 1 State.
The Goods and Services Tax is a standard tax system that is applicable to all taxable supplies in
India. Therefore, all the existing taxes on entertainment services have been replaced by a single
GST tax now.
The GST rate varies between 18% and 28% depending on the type of entertainment service
and/or products. Take a look below.
Items under 18% GST: Movie tickets( 18% GST for tickets above Rs. 100 and 12% for tickets
up to Rs. 100), Circus, TV and DTH services, theatre and classic dance performances (including
drama and folk dance) fall into this category of tax.
Items under 28% GST: Casinos, racing, movie festivals and events, amusement parks, and any
sporting event will be charged at this rate.

GST impact – Broadcast services

Consumers are paying a service tax between 14.5-15% currently for broadcast services like
Television including DTH and cable as well as films and all digital content. On top of that, 8-
12% entertainment tax is further levied thus totalling the average tax to 25%. However, after
GST came into play, consumers now only pay a single tax that varies between 18-20% reducing
the overall tax burden on the end consumer.

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GST Impact – Multiplexes and Film Production Houses

Multiplexes were charged 27% tax on the sale of tickets and levy on food and beverage revenue.
GST after introduction increased the company margin by 4-5%. Film producers pay large
amounts of money as service tax for processes like satellite rights, theatrical rights, etc. Under
GST all taxes come under the same category.
GST, though a simple tax, yet it felt complicated to many people as it was new. Many people
want GST Filing Software for GST eFiling. If you face issues and want a GST return filling
software for shortening the tedious and time-consuming process, then you can use our GST eFile
Software. It is convenient and straightforward to do online GST filing for small and big
businesses. We provide affordable GST return filing packages so that your GST eFiling journey
becomes smooth and hassle-free.

GST Impact on Consumers

Depending on the existing entertainment tax rate in specific states, GST has either increased or
decreased the overall cost of entertainment for end consumers.
Before GST, the movie tickets were taxed at 30% average entertainment tax rate and the food
provided at movie theatres was charged with 20.5% VAT + Service tax.
After GST, there is a 28% tax on movie tickets and food and beverages are charged at the
standard rate of 18%. On average, the GST rates are lower as compared to the previous VAT (+
service tax). However, the states which already had low entertainment tax or no tax before will
now see an increase in the cost of entertainment under GST. GST on entertainment mainly the
cost of movie tickets may differ from one state to another.
In addition to the above tax, GST also has the provision of allowing individual states to charge
an additional local body tax (LBT) on the entertainment services being offered in their respective
states. This will further increase the cost for end consumers.
GST also gives local municipal bodies the freedom to charge an additional tax on entertainment
services in their areas. This may further add to the cost of these services. In the current scheme of
affairs, consumers pay a service tax ranging between 14.5-15% for all broadcast services like
Television (Cable + DTH), films as well as digital content. Apart from this an entertainment tax
ranging between 8-12% is further levied increasing the average tax to as much as 25%. Once

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GST comes into play, consumers will have to pay a single tax the likely rate for which will be
anywhere between 18-20%. Hence the overall rate of tax on consumers will reduce significantly.

GST on Entertainment Service Providers

The owners in the entertainment industry will also have to pay GST on entertainment services,
including ticket sales and food & beverages sold by them, however, the additional tax can be
recovered through input credits (ITC) on the service components such as rent, security and other
related services of the entertainment facilities.
To conclude, GST will decrease the entertainment services cost in most of the states in which
entertainment tax was higher than 28%. However, the states which already had low or no tax on
entertainment services will see a rise in the cost of movie tickets and other related services.

Impact on production houses and theatre chains

As per the current law, film producers are expected to pay exorbitant amounts of money as
service tax for processes like theatrical rights, satellite rights etc. Once GST comes to play, all
taxes will come under one umbrella making it much simpler for film producers. The bill will also
prove to be a boon for theatre chains like PVR that currently has to deal with different tax
processes in all different states in the country. This further means that since the tax cost will
reduce, profits for companies like PVR will shoot up. The hassle of dealing with different state
governments with varied rules too will be done away with.
Though on paper the GST sounds like a dream, there is a major hiccup in store for the media
industry (Fig-1) in the form of entertainment taxes that the Government has allowed local bodies
like municipalities to impose on movies. The Government has allowed this in order to safeguard
the interests of the local bodies giving them the freedom to choose the rate that they want to
impose.
A move that has made the industry exceedingly worried. Uday Pimprikar, Tax Partner at EY
says, 'The whole purpose of the GST to serve as a single tax gets defeated with this allowance.
The Govt. has to find a way to legislate the rate of entertainment tax imposed by local bodies in
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order to maintain uniformity. The best case scenario would be if the Government subsumes this
tax under GST Bill itself.'
The current Indirect tax regime in India provides for a complex tax environment due to
multiplicity of taxes, elaborate compliance obligations and tax cascading. In the ensuing
paragraphs, we have sought to identify the key aspects of the Model GST Law as may be
relevant for the Entertainment and Media industry.
Industry will now also need to pay state GST
As per the structure of the GST law, each intra-State supply would attract Central GST as well as
State GST. For inter- State supply, IGST would be applicable. The draft Model GST Law
contains provisions to determine the place of supply in each case.
Currently, service tax being a central levy, an option of centralized registration is available, and
hence the place of supply of services is not very relevant. However, considering that states will
also charge SGST, and considering the absence of a centralized registration option,
determination of place of supply becomes crucial.
Video streaming services provided by an entity located outside India to subscribers (private
individuals) may become taxable under reverse charge, if the payment exceeds a threshold limit,
which is not specified in the draft law. However, there is no clarity on how this scheme would be
operationalized.

Key action points

 Update customer database to ensure correct raising of invoice
 Revamp IT system to be in line with place of supply for various transactions
 File representation for continuation of centralized registration option for CGST

Valuation
Presently, the value of taxable services is the gross amount charged by service provider.
Normally, the area of dispute by the tax authorities relates to the probable addition of
reimbursements to the value of taxable services.
Under the GST regime, the entire concept of taxing services is proposed to be changed.
Transaction Value would be considered for payment of tax, with various inclusions defined
under the GST Valuation Rules. In case the proper officer has reason to doubt the truth or
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accuracy of the value declared, he has the power to examine transaction value put to tax. This
would mean an additional burden on the taxpayers, as it would involve satisfying the tax
authorities of the truth or accuracy of the transaction value.
In other words, the new Valuation concept for services would require in-depth preparation of
backup documentation by the taxpayer. This is not warranted under the current service tax law.

Key action points

 There is a need for representation that since the services are not comparable to one
another, the concept of market value will lead to challenges for service providers, and
should be done away with.
 Service providers have to be mindful while setting prices for services provided by them,
and would need to take the prevailing market prices into consideration.
 Representation for dilution of the valuation provisions as they apply to services.

Discounts
Post-supply discounts will not be included in the transaction value if it is established as per the
agreement and is known at, or before, the time of supply. Year-end discounts and discounts
offered on achieving a target will also be excluded if they could be specifically linked to relevant
invoices against which discount has been offered.

Key action points

 The agreements to be revisited to recognize discounts in advance in order to avail the
benefit of excluding post- supply discounts from the transaction value.
 IT systems to be revamped in order to track invoices pursuant to which discounts are
provided.

Barter and Exchange

Barters and exchanges are quite common transactions in the entertainment and media sector. The
term supply under GST law specifically includes barter and exchange. However, there are no
specific provisions to determine the value of barter and exchange, which will lead to practical
difficulties.
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Key action points

 The valuation of transactions under the barter system has to be done meticulously by the
service providers. The value should be comparable to same or similar services provided
by other service providers in the market.

Free services
Presently, as per the definition of the term ‘service’, only those activities which have a
consideration are liable to service tax.
The Model GST Law proposes to also tax services by a taxable person to another person in the
course of furtherance of business, without any consideration. This proposal could have far-
reaching implications, as identification and value attribution for such supplies could be
challenging. For example, viewing of news channels for limited period of time, free music
downloads, free subscription for limited period, etc. could be subject to GST.

Key action points

 The industry should represent that instances of free supply of services, which would be
taxable, should be specified in the GST legislation.

Input service distributor concept (‘ISD’)

ISD concept has been proposed for transfer of credit of input services between two or more
locations. ISD can transfer credit of all types of GST (CSGT, SGST or IGST). Further, ISD can
be any supplier of goods or services. Considering the possibility of multiple registration state-
wise, ISD could be used as a tool to ensure optimal utilisation of head office- related credit,
hence resulting in actual reduction in cost.

Key action points

 Locations to be identified where there may be accumulated credit and insufficient output
Liability ISD registration may be taken in such State to distribute credit to other locations
 Revamp IT systems for such changes.

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Impact on ongoing contracts

Specific transition provision has been stipulated vide Section 160 for periodic supplies as
under: ‘160. Notwithstanding anything contained in section 12 and 13, no tax shall be payable on
the supply of goods and/or services made on or after the appointed day if the consideration for
the said supply has been received prior to the appointed day and the duty or tax payable thereon
has already been paid under the earlier law’. Also, there is no provision for treatment of supplies
prior to GST law where, either the invoice has not been raised, or payment has not been received,
or tax has not been paid prior to enactment of the GST law. This could result in dual taxation
both, under the previous regime as well as under the GST regime.
Coverage of the transition provision needs to be analysed to check whether implications for all
possible transactions during the transition period are clear. Accordingly, necessary representation
would need to be filed for clarity in transition provisions.

Key action points

 To analyse tax liability for all ongoing projects (likely to overlap with GST
implementation) in line with transition provision
 Transition planning for timing of supplies, advances and payment of tax
 Representation to be filed to provide less ambiguity on transition provision for ongoing
contracts.

Key action points

 Representation to be filed for a more liberal credit regime
 Representation on the premise that placing the responsibility on the company for non-
compliance by vendors will cause unnecessary hardship to the companies.

Territory
The GST Act extends to the whole of India. Currently under the service tax law, J&K has been
excluded. In other words, J&K is included under the GST Act. Hence, service providers would
now not be required to bifurcate their services between J&K and the rest of India.
The Bad for Entertainment Industry:
 Power provided to Municipality to tax entertainment and amusement:
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Under GST, local governments can charge and collect taxes on entertainment and amusement.
Someone involved in movie making cannot adjust the GST paid and it becomes an additional
levy. The state of Tamil Nadu has levied such tax on film tickets thereby naking the tax burden
heavier than before. Film distributors and theater owners are on a strike to oppose this levy as it
kind of beats the concept of One Nation One Tax.
 Theatrical rights of films taxable:
The theatrical rights of films were not liable for VAT or Service Tax. Now, sale or lease of all
the rights will attract GST. For the entertainment industry, the tax burden will increase in this
aspect. The level of credit will depend on the inputs of goods and services used by the producers
and whether they are being acquired from a registered dealer. Food, beverages, etc., which form
a major part of the production cost will not be entitled to ITC due to specific provisions.
 Lapse of Cenvat Credit:
In case of a film producer or a television content producer, GST is 12%. The rentals and services
provided by artists, technicians and other persons form a major portion of input in a film or a TV.
These attract 18% GST. Major inputs are taxed at 18% GST but the output is charged at 12%.
Therefore, ITC paid will remain unutilized and may have to be written off. In case of TV series,
ITC may remain unutilized.
 Reverse Charge:
In the entertainment industry, a large section suppliers or service providers may not be registered
under GST. Purchases from them will attract GST which will the buyer will have to pay. The
compliance cost as well as the basic cost of input will increase as service providers have to
provide GST compliant invoices. Services by an author, music composer, photographer, artist or
like by way of transfer or permitting the use of enjoyment of copyright covered under section 13
(1)(a) of the Copyright Act, 1957 are now subject to Reverse Charge by notification date 28th
June. The Reverse Charge Mechanism has been deferred until March 2018.

Impact on Event Organizers:

Compulsory GST registration of Event Organizers selling tickets online:
E-Commerce Operators have to collect TCS from the sellers on their platforms. So, any Event
Organizer that sells tickets online will have to obtain a registration under GST – irrespective of
their turnover. TCS is collected on the base value of the supply which is equal to the cost of the
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ticket minus the GST applicable. Organizers will pay this to the government by the 10th of the
succeeding month. GST is applicable at the rate of 2%. Event Organizers can claim credit of
TCS against the output GST liability.
Responsibility of an event organizer selling tickets online:
1) An Event Organizer has to register and provide the GSTIN to the online platform where you
are selling tickets.
2) Before listing an event on any platform, the Event Organizer must provide a billing address
for the event and location of the event. In this way, the E-Commerce operator can collect
appropriate TCS and comply with GST Provisions.

Impact of GST on supplies made by producers

The producer is the genesis of the industry, a person or organisation who is engaged in the
production of films.The producer transfers the broadcasting rights to the distributor on a
permanent or temporary basis, and provides sponsorship services and partners with radio
stations.
Before the GST regime, temporary transfer or permitting the use or enjoyment of a copyright
covered under sub-section 13(1)(a) and (b) of the Indian Copyright Act, 1957, relating to original
literary, dramatic, musical or artistic works or cinematograph films, was exempt from Service
Tax. Under GST, this exemption has been taken away. The supply of all the intellectual property
rights (in respect of goods other than information technology software) attracts GST at the rate of
12%.
Permanent transfer of copyrights was considered as deemed sales and was therefore chargeable
to VAT (subject to state- wise exemptions), while the same was not taxable under the service tax
laws. Under GST, both permanent and temporary transfer is taxable at an equivalent rate of 12%.
This necessitates an increase in working capital requirement for the producers as the monetary
outflow in the form of taxes has increased. The silver lining is the simultaneous increased
availability of input tax credit. The credit of taxes paid in goods can now be used for payment of
liability on services. The rest of the routine supplies by the producer, such as renting services,
sale of old costumes, sponsorship and partnership services, attract 18% GST. One paradigm shift
on the services side is the increase in tax rates from 15% Service Tax to 18% GST.

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Impact of GST on supplies received by producers

Other than the efforts (which are not taxable), the producer utilises several goods and services to
make his outcome (a film) a success.
The earlier regime (pre-GST) did not allow set-off of input tax credit of taxes paid on goods
against the liability for providing services and vice-versa. With GST, the seamless credit facility,
it can be fairly expected that the credit base of producers is likely to expand. At the same time,
the increased default rate of tax on services from 15% ST to 18% GST could make them see an
impending cash outflow.
There is a change in the measure of taxation under GST. For instance, services (temporary
transfer of copyright) by an author, music composer or photographer relating to an original
literary, dramatic, musical or artistic work, which were earlier exempt from ST, are now taxable
under reverse charges in the hands of the recipient.
Other major service procurements, such as brand promotion services, advertisement expenses
and hiring of building and studios, which were earlier liable to ST at 15%, shall now be
chargeable to 18% GST.
The producer is entitled to avail input tax credit of taxes paid on all procurements for business
purposes, except for a few cases such as food, beverages, outdoor catering and vehicle hire.

Impact of GST on supplies made by studious

Studios provide both pre-production and post-production facilities to the producers of movies
and television shows. Pre-production facilities primarily include supply of shooting sets (on an
‘as is’ basis) on rent to producers. The producer may incur additional expenses on further design
and maintenance of the sets, for which he directly engages third-party vendors, procures goods
and services and makes payment to them.On renting of shooting sets, studios were earlier
charging 15% service tax, whereas under GST, they will be required to charge 18% GST.

Post-production facilities include providing facilities for sound recording, editing, dubbing, etc.
These services where earlier subject to 15% service tax and now will be subject to 18% GST.
Other than supply of shooting sets, the studios also provide generator sets on hire basis and
charge rent for the same. Renting of such generator sets, without transfer and effective control,
was treated as ‘supply of tangible goods’ and classified as services.

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However, such renting of such generator sets, with transfer and effective control, was treated as
right to use, and considered as deemed sales for VAT purposes. Under GST, such renting
services are subject to uniform GST of 18%.Studios also provide (preview) theatres on rent to
producers for showcasing films to limited invitees, including the Central Board of Film
Certification. In this transaction, the studio raises an invoice on the producers for providing the
theatre on rent. It was earlier subject to 15% ST and is now subject to 18% GST.

Impact of GST on supplies received by studious

The major input cost of the studios involves maintenance of the sets and studios.
For maintenance purposes, the studios procure goods and services from third-party vendors and
these goods were earlier subject to applicable VAT rates and services at 15% service tax. These
procurements will now be subject to GST, and the input tax paid on procurement of the goods
can now be used to set off GST liability on renting of shooting sets and preview theatres.
Studios also incur a major cost on electricity, which was outside VAT and service tax earlier and
continues to be outside GST. Thus, there was no indirect tax (GST) on the procurement of
electricity from the state board.
In case studios enter into a works contract for building, construction, fabrication, erection,
installation, fitting out, improvement, modification, repair, maintenance, renovation etc., of any
immovable property wherein transfer of property in goods is involved in the execution of such
contract, then it will be treated as a supply of services (works contract)
in GST. Such works contracts were earlier subject to VAT and service tax using different
methods for composition and valuation.

Impact of GST on supplies made by distributors

The distributor, who purchases the rights from the producer for further distribution, is the second
important aspect of the industry. There are certain distributors who have their own theatres to
exhibit movies. In the earlier regime (pre-GST), the permanent and temporary transfer of film
rights were taxed differently. On permanent transfer of rights, there was a levy of VAT but no
ST, while in the case of temporary transfer, the industry enjoyed exemption from
both ST and VAT.

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Arrangements amongst distributors and theatre owners can either be on a principal-to-principal

(P2P) basis, or on a service provider and recipient basis, or on partnership, joint or collaboration
basis.
In a P2P case, the constituent members are independent of each other and do not share any risk,
revenue, profit, loss or liability of the other, while in the latter cases, the constituent members
join hands for mutuality of interest and share common risk or profit together. Under the P2P
arrangement, when a movie is exhibited by the theatre owner on his own account (i.e. the
copyrights are transferred), the distributor will charge 12% GST on the supply of copyrights
(earlier exempt under ST as transfer of cinematograph films).
Alternatively, the distributor can take the theatre on hire from the theatre owner and exhibit the
movie. In this case, the theatre owner will charge GST for providing renting services and the
distributor will charge GST on the sale of tickets.

Under the third option, i.e. joint/collaboration, typically no services are rendered by the
distributor to the theatre owner or vice versa. Rather, it is commonly known as the revenue-
sharing arrangement which was not subject to tax in the ST regime, and may also not attract GST
in the absence of any underlying service.

On the sale of movie tickets, there was a state-specific Entertainment Tax ranging from 15% to
110% (an average of 30%). Under GST, tax at the rate of 18% is levied where the price of tickets
is INR 100 or less and 28% in other cases. Also, the municipal and local bodies are allowed to
levy a parallel Entertainment Tax along with GST, which may vary from state to state. The levy
of LBETs is at the discretion of the states, which would result in an additional tax burden to the
end users.

Impact of GST on supplies received by distributors

The distributor, who purchases the rights from the producer for further distribution, is the second
important aspect of the industry. There are certain distributors who have their own theatres to
exhibit movies. In the earlier regime (pre-GST), the permanent and temporary transfer of film
rights were taxed differently. On permanent transfer of rights, there was a levy of VAT but no
ST, while in the case of temporary transfer, the industry enjoyed exemption from both ST and
VAT
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Arrangements amongst distributors and theatre owners can either be on a principal-to-principal

(P2P) basis, or on a service provider and recipient basis, or on partnership, joint or collaboration
basis. In a P2P case, the constituent members are independent of each other and do not share any
risk, revenue, profit, loss or liability of the other, while in the latter cases, the constituent
members join hands for mutuality of interest and share common risk or profit together. Under the
P2P arrangement, when a movie is exhibited by the theatre owner on his own account (i.e. the
copyrights are transferred), the distributor will charge 12% GST on the supply of copyrights
(earlier exempt under ST as transfer of cinematograph films). Alternatively, the distributor can
take the theatre on hire from the theatre owner and exhibit the movie. In this case, the theatre
owner will charge GST for providing renting services and the distributor will charge GST on the
sale of tickets.

Under the third option, i.e. joint/collaboration, typically no services are rendered by the
distributor to the theatre owner or vice versa. Rather, it is commonly known as the revenue-
sharing arrangement which was not subject to tax in the ST regime, and may also not attract GST
in the absence of any underlying service.

On the sale of movie tickets, there was a state-specific Entertainment Tax ranging from 15% to
110% (an average of 30%). Under GST, tax at the rate of 18% is levied where the price of tickets
is INR 100 or less and 28% in other cases. Also, the municipal and local bodies are allowed to
levy a parallel Entertainment Tax along with GST, which may vary from state to state. The levy
of LBETs is at the discretion of the states, which would result in an additional tax burden to the
end users.

Impact of GST on supplies made by exhibitors

The last and perhaps the most important role in the value chain is that of the exhibitor. It’s the
exhibitor who screens a film for the audience. They either acquire the cinematographic film’s
rights temporarily/permanently from the distributor or rent out the theatre they own for exhibit of
movies or may enter into a revenue arrangement with the distributor.

Under the first arrangement, i.e. where the movie is exhibited on his own account, the exhibitor
earns from the sale of movie tickets. Earlier, the sale of movie tickets used to attract

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Entertainment Tax ranging from 15% to 110% (with an average of 30%), based on the state laws.
Under GST, the sale (supply) of movie tickets is subject to a tax rate of 18% where the price is
up to INR 100, and to a rate of 28% in other cases (i.e. when the price is above INR 100). Also,
the local bodies continue to have the power to levy and collect tax on entertainment and
amusement.

Under the second arrangement, the theatre owner allows his theatre to be used by the distributor
for exhibiting the movie. In other words, the theatre owner rents the cinema hall to the
distributor. This arrangement was earlier taxable at 15% and would be now be taxable at 18%
under GST.

Under the third arrangement, the theatre owner enters into a revenue-sharing arrangement with
the distributor. Under a revenue-sharing arrangement, there is no supply per se between the
distributor and exhibitor; therefore, the transaction is unlikely to attract GST.

Other than the above, a theatre owner may also earn from the supply of advertisement space,
earning of sales commission from online booking platforms, and supply of food and beverages
over the counters at the theatre.

Before GST, there was an issue of dual levy of VAT and ST on the supply of food and
beverages. Under GST, the supply of food and/or beverages is taxable at the rate of 5% with no
input tax credit facility.

Impact of GST on supplies received by exhibitors

A theatre owner incurs a huge amount of expenditure to maintain and provide the comfort and
entertainment to meet the expectations of the audience.

Earlier, as there was only Entertainment Tax on the sale of tickets, no set-off of ST or VAT paid
by exhibitors on the procurements was allowed. The levy therefore was cumulative, which the
end consumer had to bear. With the introduction of GST, Entertainment Tax is subsumed and
may reduce the final cost of tickets due to the seamless input tax credit mechanism available in
the value chain at every level.

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Major expenses incurred by a theatre owner are towards the procurement of broadcasting rights,
contract staffing, digital transmission, leasing of equipment, rental expenses, annual maintenance
expenses, etc.

Before GST, tax on the supply of manpower or security service was under reverse charge. Under
GST, tax on said supply is payable under forward charge. With the introduction of GST on the
procurement of rights and a general increase in the tax rate on services by 3%, exhibitors have
experienced an increased tax burden on procurements.

13.GST compliances for M&E

Registration

➢ A majority of taxpayers registered under various indirect tax regimes have successfully
migrated to GST.
➢ The process of obtaining new GST registrations has been fairly smooth.
➢ There is no centralised registration for service providers.
➢ There is no composition scheme for a majority of service providers.

Invoicing

➢ Tax invoice for supply of taxable goods and/or services.

➢ Bill of supply for supply of exempted goods and/or services.
➢ Self-invoice to be issued in respect of goods and services received from unregistered vendors.
➢ Payment voucher at the time of making payment to the supplier under RCM.
➢ Credit note/debit note for subsequent adjustments (linking with original document mandatory)

Liability under reverse charge mechanism

➢ Import of services
➢ Goods transportation service by Goods Transport Agency
➢ Legal services by an advocate/firm of advocates
➢ Goods transportation service in vessel from outside India
➢ Sponsorship services
➢ Services by government or local authorities except certain specified services
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➢ Supply of services by an author, music composer, photographer or artist by way of

transfer or permitting the use or enjoyment of a copyright of original works
➢ Services provided by a non-executive director to a company
➢ Services covered under reverse charge in service tax but not in GST – manpower supply
service, rent a cab service and

Tax payment

➢ Electronic tax liability register shall be maintained on a common portal for each person
liable to pay tax
➢ The assessee has to first discharge the tax and dues related to previous tax periods (if
any), then for the current tax period
➢ Electronic challan to be generated from the GST common portal
➢ Uniform payment dates for all taxes (by 20th of the next month)

Returns

➢ Common portal for all types of tax payment and returns

➢ Separate returns for different categories of taxpayers
➢ Frequency of filing returns: Monthly/quarterly and annually
➢ Simple return GSTR 3B launched in the initial months of GST implementation, to
continue till June 2018
➢ GSTR 2 (return for inward supply) for matching of credits deferred until further notice
➢ Late fees rationalised for initial months of filing
➢ GST Council to further deliberate and simplify compliances on representations from
trade and industry

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14.DATA ANALYSIS & INTERPRETATION

Data Analysis
The data collected various respondents have to analysis for the drawing conclusion . So in this
chapter efforts have been made to analysis and interpret the collective data towards impact of “
Goods ans Service Tax '' on media through questionnaire.
First of all the collected data have been presented in tabular form and there after it is analyzed
with the help of percentage and Pie Charts .
A brief description of analysis and interpretation given below :

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In Table No. 4.1 An attempt has been made of classify the respondents on the basis of Age
factor

Sr.No Age Group No.of Respondents Percentage

1 Below 25 5 10
2 25 – 40 16 32
3 Above 40 29 58
  Total 50 100

Source : Data Collected from Primary Data through Questionnaire Method.

Classification of respondents on the basis of Age

Interpretation :

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From the above table and figure it is clear that majority of respondents that is 58% are above
40 years Where as 32 % belongs to 25 – 40 years are and rest of 10 % are below 25 years.
Thus it can be concluded that there are majority of the respondents are above 40 years.

Q2. An attempt has been made of classify the respondents on the basis of qualification
factor. The qualification have been divided in to Three Categories – Graduation , Post
Graduation and Any other qualification . The description of this as below :
Classification of respondents on the basis of Qualification

Sr.No Qualification No.of Respondents Percentage

1 Graduation 19 38
2 Post Graduation 11 22
Any others Metric, Secondary and
3 PHD also ) 20 40
  Total 50 100
Sources : Data Collected from Primary Data through Questionnaire Method .

Classification of respondents on the basis of Educational Background

Interpretation :
From the above table and figure it is depicted that majority of respondents ie 40% are related
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to high and low background that means other areas, where as 38% are Graduation and 22 %
are Post Graduate. Thus it can be concluded that majority of the respondents are Concerned
Graduation and other Qualifications.

Q3. An attempt has been made of classify the respondents on the basis of Married and
Un Married Status
Classification of respondents on the basis of Status

Sr.No Status No.of Respondents Percentage

1 Married 43 86%

2 Un Married 7 14%

  Total 50 100%

Source : Data collected from Primary Data through Questionnaire Method

Classification Of Respondents on the basis of Status

Interpretation :

From the above table and figure it is clear that majority of respondents are Married i.e. 86 %
and rest of the 14% are Un married. Therefore , According to this observation maximum
respondents are married.
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Q4. Classify the respondents on the basis of Gender . The Gender are Male and Female
.The description of this as below :

Classification of respondents on the basis of Gender

Sr.No Gender No.of Respondents Percentage

1 Male 45 90%

2 Female 5 10%

  Total 50 100%

Sources : Data collected from Primary Sources through Questionnaire Method

Classification of Respondents on the Basis of Gender

Interpretation :

From the above table and figures it is show that majority of respondents are Males 90% and
Females are 10% . Thus it can be concluded Males are show in high Interest in business
activities.

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Q5. An attempt has been made of classify the respondents on the basis of their Occupation
or Category Basis . The description of this as below :

Classification of respondents on the basis of Occupation

Sr.No Occupation No.of Respondents Percentage

1 Business Mens 30 60%
2 Service Mans 8 16%
3 Professionals 5 10%
4 Any Customers 7 14%

  Total 50 100%
Sources : Data collection from Primary Sources through the Questionnaire Methods
Classification of Respondents on the Basis of Occupation

Interpretation :

From the above table and figure it is depicted that maximum respondents are businessman and as
well as customers are 60 and 14 % respectively. Where as Service man and Professionals are 16
and 10 % Respectively. That it can be concluded that majority of the respondents are doing own
Business.

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Q6. An attempt has been made of classify the respondents perception towards the Goods
and Service Tax .

Classification of respondents on the basis of their perception regarding “GST is a very

Good Tax reforms for india '' :

Sr.No Response No.of Respondents Percentage

1 Strongly Agree 28 56
2 Agree 15 30
3 Neutral 6 12
4 Dis Agree 1 2
5 Strongly Dis Agree - -
  Total 50 100%

Interpretation :

Above chart depicted that majority of the respondents satisfied with the statement this taxation
reform in india is very good 56% respondents are strongly agree with this statement and 30% are
agree and also 12 % are neutral . Hence it is concluded that majority of the respondents i.e. 56 %
are strongly agreed and 30% agreed with this statements.

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Q7. An attempt has been made of classify the respondents on the basis of their response
regarding the statement “ GST has increased the various legal formalities . ''

Classification of respondents on the basis of their perception regarding the GST

implementation.

Sr.No Response No.of Respondents Percentage

1 Strongly Agree 21 42
2 Agree 21 42
3 Neutral 7 14
4 Dis Agree 1 2
5 Strongly Dis Agree 0 -
  Total 50 100%

Interpretation :

Above Chart depicted that majority of the respondents satisfied with the statement after
implementation of GST has increased various types of formalities . 42% respondents are strongly
agree and also 42 % are Agreed and 14% are also neutral .So it is concluded that majority of the
respondents satisfied this statement.

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Q8. An attempt has been made classify the respondents on the basis of their response
regarding statement “ GST has increased the Tax burden on Common Man''

Classification of respondents on the basis of response of the respondents regarding the

statement GST has increased tax burden on common man.

Sr.No Response No.of Respondents Percentage

1 Strongly Agree 8 16
2 Agree 16 32
3 Neutral 15 30
4 Dis Agree 11 22
5 Strongly Dis Agree 0 -
  Total 50 100%

Interpretation :

According to above table , it is shows that majority of the respondents i.e. 32% are agree with
this statement and 30% are neutral and also 22% are Dis Agree for this statement . 16% are
strongly Agreed. So it is concluded that majority and cum majority peoples are said that GST has
increased the burden of Common man.

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Q9. An attempt has been made of classify the respondents on the basis of their response
towards for India is really ready for GST implementation .

Classification of respondents on the basis of response of respondents regarding India is

really ready for GST implementation

Sr.No Response No.of Respondents Percentage

1 Strongly Agree 7 14
2 Agree 19 38
3 Neutral 14 28
4 Dis Agree 8 16
5 Strongly Dis Agree 2 4
  Total 50 100%

Interpretation :

From the above table and figures it is concluded that 38% respondents are agree and 14% are
strongly agreed to India is ready for GST implementation and 28% also neutral to this statement
but even 16 and 4 % are Dis agreed also . So it is fair conclusion are majority of the respondents
are say India is ready GST implementation. Hence , results are Positive perception.

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Q.10. An attempt has been made of classify the respondents on the basis of their statement
GST has increased the Tax burden on Businessman. The results are represents on Five
Categories are given Below :

Sr.No Response No.of Respondents Percentage

1 Strongly Agree 12 24
2 Agree 19 38
3 Neutral 13 26
4 Dis Agree 6 12
5 Strongly Dis Agree 0 -
  Total 50 100%

Interpretation :

From the above data table and figure show that maximum respondents are represents that GST
has increased the tax burden on businessman so 38% respondents are Agree and 24% are
strongly agree this statement and also 26 % are neutral but even 12% are Dis Agreed for this
statement. Hence , it is concluded that maximum results are positive nature for this statement .

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Q.11. An attempt has been made of classify the respondents on the basis of their response
regarding the statement Govt. has imposed GST on people without any preparation . The
given data are classified following categories are given below :

Sr.No Response No.of Respondents Percentage

1 Strongly Agree 6 12
2 Agree 12 24
3 Neutral 22 44
4 Dis Agree 8 16
5 Strongly Dis Agree 2 4
  Total 50 100%

Interpretation :

According to above table , it is shows that majority of respondents are not high satisfied but
maximum respondents are neutral or not sure i.e. 44% and remaining are 24% only Agreed and
12 % are dis agreed so it is concluded that peoples perception regarding this statement may be
positive and some negative . But above results are some Positive .

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Q.12. An attempt has been made of classify the respondents on the basis of their response
regarding the statement GST is very difficult to understand . The data are given following
Statement are as below :

Sr.No Response No.of Respondents Percentage

1 Strongly Agree 6 12
2 Agree 18 36
3 Neutral 15 30
4 Dis Agree 10 20
5 Strongly Dis Agree 1 2
  Total 50 100%

Interpretation :

Above table and figure depict that majority of the respondents i.e. 36% are Agree and 30 % are
neutral and also !2% are strongly agree with this statement are GST is very difficult to
understand . Another 20 and 2% are dis agreed with this statement . Hence , it is concluded that
maximum respondents are Agree and neutral stage so result are may be positive . Then it show
that in initial stage is very difficult to understand GST.

15. Findings

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The Media and entertainment industry in India is poised for growth at a fast pace. Penetration of
smartphones and the ‘Digital India’ initiative have led to a spurt of activities in the digital sector.
While the growth track is impressive, a number of challenges are posed before the industry.

Key challenges faced by the Media and entertainment industry from a tax perspective include the
following aspects:

• Improving the effective tax rate

• Managing tax risks

• Implications for cross-border transactions

• Cash-blockage on account of high withholding tax rate

• Benchmarking of intellectual property/ content transactions

• Multiplicity of indirect taxes.

The biggest ask of the industry is the introduction of GST regime in India, which now seems is
not far from reality, with the introduction of Model GST law, being made available to public by
the Ministry of Finance in June 2016. There are many transactions where the input taxes paid are
not available as credit and are regarded as tax cost. Likewise, many transactions attract dual tax
levies, because of the peculiar federal structure of indirect taxes in India. GST, to be
implemented possibly, may address this issue of cascading and dual taxation impact. In addition
to the above, base erosion and profit shifting, place of effective management and income
computation and disclosure standards pose new challenges for players in the Media and
entertainment industry

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16.Suggestions

 The customers suggested that there should be a smooth , transparent and simple transition
provisions which is easily understandable.
 Special focus on awareness and training of all officers , professionals and assesses should
be given on GST.
 Since the public are very clear about GST , any disputes on GST introduction should be
protectively addressed by way of speedy redress .
 The people are not well informed on the implementation of the GST. Therefore , in order
to ensure efficient implementation of the GST, the government should come out with a
proper guideline to the society on the procedures for the implementations of GST.
 Gradual stages may be employed for the implementation like the agricultural sector, then
industrial and then the service sector.
 The relevant authorities especially the customers department must work closely with
other departments like information , Inland Revenue and other enforcement authority
ensure good implementation .
 Lastly, the government must ensure a good management of the income collected from
the GST.

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17.CONCLUSION

The film industry of India is one of the largest in the world. The impact of GST on the film
industry has both positive and negative effects depending on the state. The states who never
imposed any tax aimed only to promote their films. In such states, GST has become a burden
now. But, few of the states with high entertainment tax rates have to pay only lesser. The new tax
structure under GST is seen as positive for the multiplex operators on a net basis, and expected to
boost their profitability. This is primarily owing to the input tax credit (ITC) expected on the
fixed costs that a multiplex incurs like rental, CAM, electricity, etc.

The prices of DTH and cable services and advertisement in print media have come down with
the implementation of GST. As the usage of DTH and cable services have increased, this would
benefit the end consumer.

The ticket prices for amusement or theme parks and for concerts have increased under the new
structure. The idea of entertainment, especially going for a concert or to the amusement park is
significant in cities. It not only attracts the youth in the city, but also youngsters from nearby
towns and villages. As the prices have increased, these places will be deserted, which affects
both the owners and consumers.

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18.REFERENCES
Journals
Nitin Kumar (2014), “Goods and Service Tax in India-A Way Forward”,“Global Journal of
Multidisciplinary Studies”, Vol 3, Issue6,May 2014.
Girish Garg, (2014),“Basic Concepts and Features of Good and Service Tax in India”
Web sites
GST may address dual taxation impact on media sector: Deloitte. (2016, July 17). Business
Today. Retrieved from http://www.businesstoday.in/current/economy-politics/gst-may-address-
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Impact of GST on Media