GST will lead to increase in production potential, increases the GDP of an economy. Therefore, national imcome of the economy will increase. Due to increase in national income with fuller utilisation of resources, PPC will shift rightward.

Effects of GST on PPC

Introduction:
Goods and Services Tax (GST) is an indirect tax that has replaced many indirect taxes in India. One of the main objectives of GST is to simplify and streamline the taxation system. It has impacted various sectors of the economy, including PPC (Pay-per-click) advertising.

Increased Taxation:
PPC advertising services are subject to GST, and as a result, businesses who use these services have to pay more taxes than before. This has increased the cost of PPC advertising, making it more expensive for businesses to carry out their advertising campaigns.

Impact on Small Businesses:
Small businesses that rely on PPC advertising to promote their products and services are particularly affected by GST. They have to pay more for advertising services, which can impact their bottom line. This, in turn, can affect their ability to compete with larger businesses.

Compliance Issues:
PPC advertising companies must comply with GST regulations, including registering for GST, filing returns, and paying taxes. This has resulted in increased compliance costs for these companies. They must also keep track of the different rates of GST applicable to different services, which can be confusing.

Increase in Demand for In-House PPC Advertising:
To reduce the impact of GST on their advertising costs, some businesses are opting to carry out their PPC advertising campaigns in-house. This has resulted in an increase in demand for PPC advertising professionals, who can help businesses set up and manage their campaigns.

Conclusion:
Overall, the introduction of GST has impacted the PPC advertising industry in India. While it has increased the cost of advertising for businesses, it has also created new opportunities for PPC professionals. As businesses adjust to the new tax regime, it remains to be seen how the industry will evolve in the future.