Manas Saikia Posts

There’s no GST on books. And yet books will become more expensive: Suppliers will have to pay GST, and that will raise the cost of producing books

On 1 July 2017  the Government of India replaced the existing tax system with Goods and Services Tax or GST. I wrote in Scroll the impact this new tax will have on the publishing industry. My article was published on 8 July 2017. The text is c&p below. 

Update ( 8 July 2017): At the time of writing the GST for author’s royalties was 18% and that of printing was 5%. Subsequently after the article was published reliable sources said these figures had been revised. The GST on author’s royalties had been reduced to 12% and that of printing increased to 12%. This is a situation which is in flux and the numbers have to be constantly monitored on Government of India notifications before the new taxation system stabilizes. 

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 publishers and readers alike. The new tax system, which replaces the older, multi-layered version, envisages zero GST on books of all kinds. However, there’s a catch.

While books attract no GST, many of the components of a book do. All along the value chain, from paper to printing to author royalties, GST payments have kicked in from July 1 onwards, which means that the cost of putting together a book will now be higher. Ananth Padmanabhan, CEO, HarperCollins India said, “GST does have an impact on input costs.”

And, to maintain their margins – which have already been under pressure – publishers may have no choice but to increase 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 and binding a book. And the services are in the form of printing and delivery to the publisher’s warehouse. Now, with GST slapped on each of these components, the paper-supplies and the printer, for instance, will add this tax to their cost. In other words, it will be the publisher, who buys the products or the service from them, who will have to foot this additional expense.

The publishing industry uses the services of freelance experts for many aspects of editing and production – copy-editing, proofreading, type-setting, cover design, illustrations, and so on – all of whom will now have to pay 18% GST instead of 15% service tax. Since they will pass this cost on to the publisher, the expenses will rise further.

Explained Manas Saikia, co-founder, Speaking Tiger Books, “There is an 18% GST on all service providers. If they are registered under GST then they will charge it with their bills. If they are not registered, then there will be a reverse tax charge so the publisher will pay. The exact cost increase will vary and I would say production, pre-press, and royalty costs will go up by 5% to 6% in total.”

But why will publishers not get the same benefit that other industries will get? As with the older Value Added Tax, the GST also includes the concept of Input Tax Credits (ITC). Put simply, this means that the seller of the final product has to pay GST at the prevailing rate, but can claim credits on all the GST already paid by his suppliers. In this scenario, the publisher would have been able to claim ITC on the GST paid its suppliers – had there been a GST on the books it’s selling.

However, since there is no GST on books, the question of claiming such credits does not arise. So, the publisher will find their costs increasing because of the GST paid by its suppliers, which range from 12% on paper to 18% on printing. Said Thomas Abraham, CEO, Hachette India: “Printers have told us that there is a 5% plus increase in material cost due to GST.”

The impact on royalties
Royalties are the payment that a publisher makes to the writer of a book. It is usually calculated as a percentage of the cover price of the book – usually between 7.5% and 15%, depending on the stature of the writer, the format of the book, and the number of copies sold. This form of payment means that the author’s earnings are proportionate to the number of copies sold. However, some royalties are usually paid as an advance, to be adjusted against actual earnings later. But since publishers do no ask writers to return their advance even if they have not sold enough copies to justify that advance in the first place, this first tranche is thus a sunken cost.

Now, for the first, royalties have come under the indirect tax ambit, attracting a GST of 18%, versus zero earlier. So, an advance royalty to an author of, say, Rs 1 lakh, will now mean a tax payment of Rs 18,000. Who will pay this? As things stand, publishers are preparing to foot this cost as well, using a mechanism called reverse tax, paying the tax on the writer’s behalf as the writer may not have registered for GST.

Another option for publishers as they struggle to contain costs might be to reduce royalty payments to offset the 18% additional tax. That would be bad news for writers – but it may not be a strategy that any publisher will adopt willingly.

Summed up Abraham, “As it appears now, books are poised to become more expensive. Ironic for a category that has been kept ‘GST exempt’, but all the raw materials that make up books have gone up. So publishers may be left with no choice, but to pass on the inflationary increase from GST. Something the government may need to look into, if it kept books exempted so that prices could be held.” Added Neeraj Jain, Managing Director, Scholastic India, echoing a more optimistic view, “It’s difficult to measure the impact of GST on the publishing industry immediately. It is best to wait and watch.”

7 July 2017

Ruskin Bond “A Book of Simple Living: Brief Notes from the Hills”

Ruskin BondLove your art, poor as it may be, which you have learned, and be content with it; and pass through the rest of life like one who has entrusted to the gods with his whole soul and all that he has, making yourself neither the tyrant nor the slave of any man. – Marcus Aurelius

‘Love your art, poor as it may be…’ I have never regretted following this precept, despite the fact that it was sometimes difficult to make ends meet as a writer. The gift for putting together words and sentences to make stories or poems or essays has carried me through life with a certain serenity and inner harmony, which could not have come from any unloved vocation.

Within my own ‘art’ I think I have known my limitations and worked within them, thus sparing myself the bitter disappointment that comes to those whose ambitions stretch far beyond their talents. To know one’s limitations and to do good work within them: more is achieved that way than by overreaching oneself. It is no use trying to write a masterpiece every year if you are so made as to write only one in ten or twenty. In between, there are other good things that can be written — smaller things but satisfying in their own way. 

Do what you know best, and do it well. Act impeccably. Everything will then fall into place. 

Because I have loved my art, I think I have been able to pass through life without being any man’s slave or tyrant. I doubt I have ever written a story or essay or workaday article unless I have really wanted to write it. And in this way I have probably suffered materially, because I have never attempted a blockbuster of a novel, or a biography of a celebrity, or a soap opera. But in the end things have worked out well. I am a writer without regrets, and that is no small achievement! 

(p.73-75)

Ruskin Bond is well known in India for his stories and essays about childhood, the time he spent with his grandparents, schooldays, descriptions of life and nature in Mussorie and of course, his innumerable short stories such as “The Blue Umbrella”. A Book of Simple Living: Brief Notes from the Hills is a compilation of years of wisdom distilled and offered simply. These range from reflections upon life, to what constitutes love, learning to be at peace with yourself, observations on Nature. There is plenty to mull over in this slim book. What comes through extraordinary well in this book is how beautifully intertwined the concepts of nurturing and honing one’s art are. In life, nurturing requires immense amounts of patience, huge dollops of love, observation, reflection and judicious amounts of nourishment to ensure a healthy life. Similarly with one’s craft –slowly and steadily with time it improves. One of my favourite passages from the book is:

The wild ginger was in flower. So was agrimony, lady’s lace, wild geranium. The ferns were turning yellow. The fruit of the snake lily had turned red, signifying an end to the rains. A thrush whistled on the branch of a dead walnut tree. A tiny swarm of butterflies rose from behind a lime-green bush. ( p.28)

Evocative.

A Book of Simple Living is Speaking Tiger’s inaugural title. Speaking Tiger (http://speakingtigerbooks.com/ and on 20150303_113530Twitter @speakingtiger14 ) is a division of FEEL Books Private Limited, a book publishing and distribution company based in Delhi. It was founded in September 2014 by Manas Saikia and Ravi Singh. Publishing primarily in English, Speaking Tiger will build a diverse and inclusive list, with no fixed agenda other than to bring to readers quality fiction and non-fiction across genres.

20150303_113545Ruskin Bond’s A Book of Simple Living is a fine book. A great blessing from a well-established writer to a fledgling publishing house. Having thoroughly enjoyed this book, one to treasure too, I cannot help but feel that these are the slim pickings from a memoir.  Ruskin Bond is working upon it. It will be published by Speaking Tiger in December 2015. I look forward to it.

Ruskin Bond A Book of Simple Living: Brief Notes from the Hills Speaking Tiger, an imprint of FEEL Books Pvt. Ltd, New Delhi, 2015. Hb. pp. 160 Rs 350 

3 March 2015

JaipurBookMark ( JBM), 21-22 January 2015, Narain Niwas, Jaipur

The Jaipur BookMark 2015
Where South Asia meets the world

21-22 January 2015, Narain Niwas, Jaipur

(JBM 2015 will run for two days parallel with the Zee Jaipur Literature Festival on the 21 and 22 January)

bookmark-logo

Day 1: 21st January 2015

12:30 PM-INAUGURATION

Sanjoy Roy, Namita Gokhale, Oliver Moystad

1:30 PM-2:30 PM- INAUGURAL LUNCH hosted by NORLA

2:30 PM-3:30 PM- SESSION 1

IS PUBLISHING “UNBANKABLE”?

A business like no other, publishing finds it notoriously difficult to raise finance: a session on the business of publishing; discussing the structural issues concerning publishing, bank finance, volume and scalability etc.

 

Speakers: Dr Shubhada Rao, Henry Rosenbloom, Bikash Niyogi, Manas Saikia, Atiya Zaidi and Aditi Maheshwari
Moderator: Naresh Khanna

3.30 PM – 4.00 PM TEA

4:00 PM-5:00 PM-SESSION 2

DIGITAL PLATFORMS: THE UNTAPPED TERRITORIES

From social media to distribution, what should publishing professionals be aware of in their rapidly changing industry? Kindles, Kobos, iPads and audiobooks; what does all this new technology mean for the industry from writers to editors, marketers to consumers?

Speakers: Nicolas Idier, Niyam Bhushan, Rajiv Mehta, Ajit Baral and Vishal Anand
Moderator: Arpita Das
Session Supported by: NewsHunt

5.00PM – 6.00PM – SESSION 3

LIBRARIES AND ARCHIVES: TIME TRAVELERS EXTRAORDINAIRE
An IGNCA supported Open Forum, on the convergence of Libraries, Archives and Museums. With more access to information available online than ever before, regardless of location, what new role could and should libraries and archives play in making information accessible to all?

Speakers: Dipali Khanna, Alberto Manguel, Nicholson Baker, Dr. Venu Vasudevan and Shantanu Ganguly
Moderator: Bharti Sinha
Session supported by: Indira Gandhi National Centre for the Arts

6:00 PM-7:00 PM DRINKS

Day 2: 22nd January 2015

10.30AM TEA/COFFEE

10.45 AM – 11.30 AM – SESSION 1

WHO IS THE BOOK?
‘More than 48 printed pages and bound within 2 covers’, is that the book or is there more to it? On the changing format and technology of the book in an increasingly interactive environment.

Ralph Mollers in conversation with Sirish Rao; introduced by Ute Reimer-Boehner

11.30 AM- 12.30 PM – SESSION 2

RETHINKING TRANSLATION: RELOCATING THE CENTRE

How do we translate content across multi-media and digital borders including e-books, audio books, graphic texts and cross-media conversions?

Speakers: Vera Michalski, Satti Khanna, Mahua Mitra, Rick Simonson, Shona Martyn and Manasi Subramaniam
Moderator: Renuka Chatterjee

12.30 PM-1.30 PM SESSION 3

SOUTH-SOUTH COLLABORATIONS: A CONVERSATION WITH AUSTRALIAN PUBLISHERS

Increasingly, publishers in the global south are beginning to work directly with each other; literary festivals and bookfairs in southern countries are now choosing to focus also on southern authors. In a free ranging conversation, Australian publishers and literary entrepreneurs talk about new collaborations and new relationships.

Speakers: Ivor Indyk, Terri-Ann White, David Ryding, Kate McCormack, Wendy Were and Meredith Curnow
Moderator: Urvashi Butalia

1.30 PM-2.30 PM LUNCH

2.30 PM-3.30 PM SESSION 4

CONTENT IS QUEEN

The book is no longer just a book–it is now a basis for film, video games, interactive reading, collective writing and so much more. With book formats morphing and mutating how will content adapt to survive?

Speakers: Amish Tripathi, Ashwin Sanghi, Prasoon Joshi, Sandip Sen and Renu Kaul
Moderator: Karthika V.K.

3.30 PM-4.00 PM TEA

4.00 PM – 5.00PM-SESSION 5

TOWARDS A NATIONAL READING POLICY

A viable reading policy involves encouraging reading, creating an infrastructure to make books available and finally providing books. What role can States and private actors play to overcome the gap between policies and their implementation?

Speakers: Oliver Moystad, M A Sikandar, Prof. Apoorvanand and Prof. Avdhesh Kumar Singh
Moderator: Manisha Chaudhry
Session supported by: National Book Trust

5 PM CLOSING CEREMONY

6 PM-7 PM DRINKS (those who wish to leave for DSC South Asian Literature prize at Diggi Palace may proceed)

Participants are free to network in the Rights Chaupal.

To register, please visit the Jaipur Literature Festival website at: http://jaipurliteraturefestival.org/registration/jaipur-bookmark-registration

and click on the Register button.

Registration would include delegate status for the ZEE Jaipur Literature Festival specified to the date.

Rs 3,500/- per day or Rs 6,000/- for two days per person

For further queries, please contact: jaipurbookmark@teamworkarts.com

Facebook: https://www.facebook.com/JaipurBookMark?fref=ts

PrintWeek India Books Special 2013

PrintWeek India Books Special 2013

The cover of the PrintWeek India Book Special 2013 and the first page of my editorial.

The cover of the PrintWeek India Book Special 2013 and the first page of my editorial.

 

 

The Books Special 2013 is out! I have collaborated with PrintWeek India for the past eight months on this project. It consists of over 25 interviews with the senior management of the Indian publishing industry. In this 116-page publication, there are interviews, viewpoints, profiles and analysis. It provides a snapshot of the publishing industry, discusses the challenges facing publishing professionals in this ecosystem and most importantly delineates the the manner in which publishers are coping with the major changes that are sweeping through the publishing landscape. Ultimately the Books Special celebrates the future of books in India.

There are only printed copies available for now.

The list of contents is:

Introduction – Jaya Bhattacharji Rose

Perspective 

National Book Trust, India – M A Sikandar

Viewpoint – Urvashi Butalia, Zubaan

PK Ghosh – Homage by Rukun Advani, Permanent Black

Ramdas Bhatkal – Profile by Asmita Mohite

Motilal Banarsidas – Chronicle

In Memoriam – Navajivan & Jitendra Desai

Spotlight – Book printers of India

Trade publishing 

Westland – Gautam Padmanabhan

Random House India – Gaurav Shrinagesh

Seagull Books – Naveen Kishore

Aleph & Rupa – David Davidar & Kapish Mehra

HarperCollins Publishers India – PM Sukumar

Hachette Book Publishing India – Thomas Abraham

DC Books – Ravi Deecee

Pan Macmillan India – Rajdeep Mukherjee

Penguin Books India – Andrew Philips

Harlequin India – Manish Singh

Diamond Books – Narendra Verma

Kalachuvadu Publications – SR Sundaram

Bloomsbury Publishing India – Rajiv Beri

Simon & Schuster India – Rahul Srivastava

Children’s Books Publishing 

ACK Media – Vijay Sampath

Scholastic India – Neeraj Jain

Education, Academic and Reference Publishing 

Sage Publications – Vivek Mehra

S Chand Group – Himanshu Gupta

Cambridge University Press India – Manas Saikia

Wiley India – Vikas Gupta

Sterling Publishers – SK Ghai

Springer India –  Sanjiv Goswami

Tulika Books – Indira Chandrashekhar

Manupatra – Deepak Kapoor

Orient Blackswan – R Krishna Mohan

Publishing Process 

Pearson Education India – Subhasis Ganguli

Palaniappa Chellapan – Palaniappa Brothers

Sheth Publishers – Deepak Sheth

Hachette Book Publishing India – Priya Singh

Mapin Publishing – Bipin Shah

Prakash Books – Gaurav Sabharwal

7 Sept 2013 

Jaya Bhattacharji Rose is an international publishing consultant and columnist. Her monthly column on the business of publishing, PubSpeak, appears in BusinessWorld online.

@JBhattacharji

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