GC: GST is a win-win for event organisers and audiences

Tickets which were earlier taxed at close to 40 per cent (25 per cent entertainment tax and 15 per cent service tax,) will now become cheaper as the cap has been fixed at 28 per cent and in cases where the ticket cost is less than Rs. 250, they will be exempted from GST

e4m by Mazhar Nadiadwala
Published: Nov 27, 2017 8:43 AM  | 3 min read

These are interesting times for the events industry. After facing a slump in 2016 following demonetisation, the MICE (Meetings, Incentives, Conferences and Exhibitions/ Events) industry has yet again been rocked by GST. As an industry, it has witnessed tremendous growth over the past few years. According to a Deloitte report ‘Media and entertainment industry-India tax landscape,’ we are the fifth largest media and entertainment market in the world. Another report by PwC states that the industry is also expected to clock a 10.6 per cent compounded annual growth rate by 2021.

Some of the key factors for this growth are the rise in digital activations, IPs (intellectual properties,) personal events, product launches, sports leagues and a significant increase in below the line spends. As an industry that has been growing by leaps and bounds, with one of the country’s biggest economic reforms coming in place, we are gearing up for big changes and have already anticipated the effects it will have on our operations.

One of the biggest changes that the GST has brought about for the industry is that of a unified tax system. As per the final proposed GST Bill, the Government has put in place a four-tier structure wherein taxes will be levied at multiple rates starting from 5 per cent and going up to 28 per cent. Whereas under the earlier tax regime, event planners were subject to VAT, CST, service tax, CAD, SAD, entry tax, excise duty, entertainment taxes, etc. Under the new system, we will no longer have to approach the local departments for NOCs.

As a country that is both culturally as well as commercially rich, India has become one of the top locations for destination events and has attracted a growing number of foreigners. As a result of this, the hospitality sector has greatly benefited as there has been a surge in the demand for accommodation.

With GST coming in to the picture, the good news for the industry is that we will now have to spare less for hotel accommodation as it will be free from multiple layers of state and luxury taxes. Budget hotels, charging less than Rs. 1,000 per day will attract low or even nil GST, whereas those charging Rs. 5,000 and above will attract 28 per cent GST. Inns, clubs, guest houses and other commercial lodging having room tariffs above Rs. 1,000 but below Rs. 2,500 will be taxed at 12 per cent.

Renting of venues, with the current tax rate being 14 per cent, which constitutes a major expense for event planners, will also become cheaper as the GST Bill states that any lease of industrial or residential property for commercial use comes under the ambit of a service. Sources have stated that following this announcement, the Government is bracing itself to levy GST on all rental income.

In cases of ticketed events, the new tax system has been seen as a boon as organisers will compulsorily have to register themselves for GST. Entertainment tax, which was earlier charged separately, has now been included in GST. Tickets which were earlier taxed at close to 40 per cent (25 per cent entertainment tax and 15 per cent service tax,) will now become cheaper as the cap has been fixed at 28 per cent and in cases where the ticket cost is less than Rs. 250, they will be exempted from GST.

Although initial jitters will affect the event industry with budget cuts playing a major role, it is too soon to tell how will we be affected on the whole. Nonetheless, we are still hopeful of a positive change for the industry with the onset of GST.

Mazhar Nadiadwala is the Managing Director of Dome @NSCI.

Disclaimer: The views expressed here are solely those of the author and do not in any way represent the views of exchange4media.com.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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