GST – a half-baked cake!

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GST – a half-baked cake!

Both big note currency demonetization at the end of 2016, and the current goods and services tax (GST) one-tax one-country regime have been optimistically cheered on by much of the publishing and printing industry. Both large and small commercial printers since 1 July 2017 when the GST came into force, are saying that their presses are mostly idle or working single shift even as they spend countless hours in meetings with other printers and publishers and consultants.

The problem with one tax one country is that there are multiple GST lanes—0%, 5%, 12% and 18%—for the most part. There is apparently one rate for books where the publisher provides the paper and another if the printer provides a turn-key solution. At a Capexil seminar in Delhi attended by leading book printers, it was not really clear if the rate on printed books is 0% or 18%. For status holding book printing exports, the tax is apparently 0% but large print exporters do not want to be caught out later as ITC was this week when the taxes on cigarettes were steeply revised upwards.

In the context of even senior government officials attending GST seminars being candidly less than authoritative, a leading book printer and exporter says, “If you are the creator of a half-baked cake and you don’t have any answers, who or what are printers or publishers supposed to do?”

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Indian Printer and Publisher’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

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