Yes , effect on PPC due to GST. If GST increases the production possibility increases,it will increase the GDP of the economy and PPC will shift right upward direction and if GST decreases the production possibility decreases,it will decrease the GDP of the economy and PPC will shift left downward direction.

Impact of GST on PPC

Introduction:
Goods and Services Tax (GST) is a comprehensive indirect tax on the supply of goods and services across India. It has replaced multiple taxes such as VAT, excise duty, and service tax, among others. GST has brought significant changes in the Indian economy. One of its effects is on Pay-Per-Click (PPC) advertising.

1. Increase in Cost Per Click (CPC):
GST is applicable to all online advertising services, including PPC. Earlier, service tax was charged on advertising services, which was lower than the current GST rate of 18%. This has led to an increase in the overall cost of PPC campaigns, resulting in a higher CPC.

2. Impact on Advertisers:
The impact of GST on PPC campaigns varies for advertisers based on their business size and advertising budget. Small businesses with a low advertising budget have been severely affected by the increase in CPC. They may not be able to afford the higher cost of advertising, leading to a reduction in their visibility and sales.

3. Benefit for Large Advertisers:
Large advertisers with a significant advertising budget may not be affected much by the increase in CPC. They have the advantage of economies of scale and can negotiate better deals with advertising platforms. Also, GST allows them to claim input tax credit, reducing the overall cost of advertising.

4. Change in Ad Strategies:
Due to the increase in CPC, advertisers need to change their strategies to make the most of their advertising budget. They need to focus on targeting relevant audiences and optimizing their campaigns to improve their quality score. Advertisers can also explore alternative advertising channels such as social media advertising, which may be more cost-effective.

Conclusion:
In conclusion, GST has had a significant impact on PPC advertising in India. The increase in CPC has affected small businesses the most, while large advertisers have benefited from input tax credit. Advertisers need to adapt their strategies to make the most of their advertising budget and stay competitive in the market.