There’s no GST on books. And yet books will become more expensive

On the face of it, the fact that no Goods and Services Tax has been imposed on books – there was no excise either earlier – should have been good news for and readers alike. The new tax system, which replaces the older, multi-layered version, envisages zero on books of all kinds. However, there’ a catch. While books attract no GST, many of the components of a book do. All along the chain, from paper to printing to author royalties, GST payments have kicked from July 1 onwards, which means that the cost of putting a book will now be higher. Ananth Padmanabhan, CEO, HarperCollins India, told .in, “GST does have an impact on input costs.” And, to maintain their margins – which have already been under pressure – have no choice but to prices. With most individual titles – barring textbooks and mass market bestsellers – already seeing dwindling sales, higher prices are not welcome right now. Why prices will rise What goes into a book? The intellectual property comes from the writer, in the form of the manuscript. The physical components include paper, ink, glue, etc., required for printing […]

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