GST Impact on media industry
Impact of GST on Media Industry
September 18, 2016

Benefits of GST

GST has been envisaged as an efficient tax system, neutral in its application .

The advantages of GST are:

  • Wider tax base, necessary for lowering¬†tax rates and eliminating classification disputes
  • Elimination of multiplicity of taxes and their cascading effects
  • Rationalization of tax structure and simplification of compliance procedures
  • Harmonization of center and state tax administrations, which would reduce duplication and compliance costs
  • Automation of compliance procedures to reduce errors and increase efficiency

Destination principle

The GST structure would follow the destination principle. Accordingly, imports would be subject to GST, while exports would be zero-rated. In the case of inter-state transactions within India, State tax would apply in the state of destination as opposed to that of origin.

Taxes to be subsumed

GST would replace most indirect taxes currently in place such as:

  1. At Central Level:
    • Central Excise Duty [including additional excise duties, excise duty under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955]
    • Service tax
    • Additional Customs Duty (CVD)
    • Special Additional Duty of Customs (SAD)
    • Central Sales Tax ( levied by the Centre and collected by the States)
    • Central surcharges and cesses ( relating to supply of goods and services)
  2. At State Level:
    • Subsuming of State Value Added Tax/Sales Tax,
    • Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
    • Octroi and Entry tax,
    • Purchase Tax,
    • Luxury tax, and
    • Taxes on lottery, betting and gambling.

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