Influence of Goods and Service Tax on Ganesh Idols: A Case Study of Hyderabad City

Abstract

GST also known as the Goods and Services Tax is defined as the giant indirect tax structure designed to support and enhances the economic growth of a country. More than 150 countries have implemented GST so far. However, the idea of GST in India was mooted by Vajpayee government in 2000 and the constitutional amendment for the same was passed by the Lok Sabha on 6th May 2015 but is yet to be ratified by the Rajya Sabha. However, there is a huge hue and cry against its implementation. It would be interesting to understand why this proposed GST regime may hamper the growth and development of the country. Blaming the timing of the Goods and Services tax (GST) rollout, Ganesh Puja organizers and idol makers here say they are feeling the pinch of the new indirect tax regime as advertising revenues are falling and margins are tepid. Following the increasing funds crunch, community Puja committees in Hyderabad have started curtailing their budgets. The Eleven-day Ganesh Puja festival is the biggest annual carnival in this part of the country was celebrated being from 25th August to 4th September this year. "Puja organizers faced a serious challenge in the regime of the new demon -- GST. Most of the big Pujas depend on sponsorships, advertisements and donations because the subscription collection contributes not even 10 percent of the budget. "Unfortunately, advertising revenues have dried up and, accordingly, Puja committees have curtailed their budgets by 15-20 percent, depending on their size.