The first month after the implementation of GST, has brought along with it a lot of problems for some sectors. Surpassing these teething problems has not been easy. The issues have led to a noticeable drop in the revenue. It has been analyzed that the decline of revenue has been 25%. The impact of GST has been huge on the sale division. To combat the effect, some companies have mandated six days a week for the sales department.
The television channels have been the first ones to take the hit of the tax system implementation. The industry has faced around 25% revenue drop. In some part, the impact of GST can be attributed to the demonetization as well.
MK Anand the CEO and MD of Times Network has said that the sales rate from AD has dropped up to 25%. The issues have started emerging out from the time demonetization took place. Since the day cash has been banned the ad industry witnessed a sudden slash in the revenue.
Turner International has reported a major drop up to 20% in the revenue. The spoke person from the company said that everything was going well. However, after GST implementation everything changed. The impact has been felt during the June July time due to the tax implementation and the season time in August.
However, August came with a breath of respite when everything seems to be settling down again. The festive season is about the hit the nation and that too early this year. With the season of festivity knocking on the door, the ad industry is looking forward to yet another great revenue earning time.
It is not only the television channels that have had the faceoff with the GST implementation. The radio stations to have their share of issues in the GST era. They also have taken some falls in the revenue due to the new taxation.
However, it is the FMCG industry which has taken the biggest fall in the revenue due to the GST implementation. The media spoke persons are holding on to the hope that the future will bring good news for the industry.