25 Jul 2018

Effects of Content Marketing after GST

Post by ContentDaDa
Reading Time: 2 min

A GST (Goods and Service Tax) is a newly introduced tax structure in India implemented since 1st July 2017. With this new Tax format, the Indians have started off their new journey to much hyped ‘one nation one tax system’. The tax is one value-added tax across the country, which are applied to the goods and services. Though the economic experts are claiming this to be a progressive change by the Indian government, the lack of awareness about the GST has made things bad to worse. Let’s check the effects of Content marketing after GST:

The content marketing industry seems to struggle with the 3% rise (from 15 to 18 percent), which they have to adjust it somewhere. However, if the digital marketing companies bar their clients by increasing the rates of their services, then it will impact their business.

The digital marketing and other marketing services offered by companies will end up boosting up their costs as the giant search engine Google will certainly going to charge accordingly. This will end up increasing the cost of the creation of the content marketing ads are decreased, and the digital ad spend have increased.

Before the advent of GST the advertising expenditure was the manufacturing expense that falls under sales tax and the VAT, however, with GST it will be available for the input credit that ends up reducing the advertisers’ costs.

The initial days the small companies dealing with content marketing or digital marketing methods are seen bearing the loss while the bigger companies have sorted out the solution for the same.

The tax applied to the IT sector earlier was around 25 to 25 percent, however, with the advent of GST, it has gone down to 18 percent. So, the Content marketing (part of Digital Marketing) also fall under the IT sector is likely to benefit.

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