The uncertainty caused after the implementation of Goods and Services Tax (GST) has taken a toll on the biggest annual festival of West Bengal: Durga Puja. Organisers are reeling under funds crunch as revenue from sponsorship has drastically gone down this year.
According to several major Durga Puja organisers, the revenue has dried up because corporate organisations are still not sure whether GST would be imposed on advertisements at Puja pandals. “A lot of corporate houses have not approached us for advertisements. Since advertisements are the main source of revenue for us, our budget this year has also been badly hit,” said Bappaditta Dasgupta, general secretary of Naktala Udayan Sangha, a major Durga Puja in south Kolkata. He said that while last year their budget was about Rs. 42 lakh, this year it has come down to about Rs. 33 lakh.
Less advertisements
For another major Durga Puja committee in south Kolkata, not only has the number of advertisements come down this year, but also the corporate houses are making payments for the advertisements after deducting GST. “This has created a severe fund deficit for us. Last year our budget was about Rs. 40 lakh, this year it has come down to less than Rs.30 lakh,” said Sudipta Kumar, secretary of Deshapriya Durgatsav.
However, a section of the organisers are yet to gauge the impact of GST on Durga Puja. “All though we are facing some difficulties in fund raising due to GST this year, I can’t make any comment on issue as our fund collection is still going on,” said Naresh Jain, general secretary of Mohammed Ali Park Durga Puja committee in central Kolkata.
Dip in spending
A senior marketing official of a corporate house in the city confirmed that there has been a decrease in the spending on advertisements at Puja pandals. “Due to GST the cost of advertisements has increased. We are facing some constraints in giving advertisements,” the official said.
Financial experts attributed the lack of advertisements to “lack of clarity” about GST norms.