GST reforms bypass advertising, print and OOH

New Delhi: The 56th meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman, announced sweeping rate cuts across consumer categories, from parathas and hair oil to televisions and insurance, but left the advertising, print and out-of-home (OOH) sectors untouched.

The status quo means 18% GST on advertising services, 5% for print ads and a fragmented OOH structure (5% on rentals, 18% on execution) will continue, dashing industry expectations of relief.

For the print sector, the disappointment is particularly acute. The Indian Newspaper Society (INS) and the Association of Indian Magazines (AIM) had been lobbying hard for rationalisation. 

While commercial printing services remain under the 12% slab and print advertising at 5%, inputs such as newsprint and ink are taxed at 5% and 12% respectively, compressing margins further.

AIM had specifically urged the Council to exempt digital editions of newspapers and magazines from the current 18% GST, reduce GST on LWC paper up to 70 gsm to 5% or exempt it entirely, exempt or reduce GST on cover paper to 5% and allow full Input Tax Credit (ITC) for newspapers and magazines.

The advertising industry, spanning creative, media buying and digital campaigns, will continue under the 18% GST slab. Agencies acknowledge that ITC provides some cushion, but argue that a lower rate would have encouraged SMEs and first-time advertisers to spend more on formal advertising, thereby expanding the overall market.

The OOH sector remains weighed down by a dual slab system: 5% GST on rentals and 18% on execution services. The Outdoor Advertising Association of India had demanded a unified 12% rate to simplify compliance and encourage investment in digital OOH. The absence of reform means small and mid-sized operators continue to face high compliance costs and barriers to scale.

However, lower prices on essentials and consumer durables are likely to expand festive consumption, giving FMCG, auto, retail and e-commerce players more headroom to scale their AdEx outlays, giving the advertising world the indirect benefit of GST rate cuts. 

The government’s decision underscores fiscal caution. The consumer-facing GST cuts, including on TVs above 32 inches, durables, FMCG and auto, are estimated to cost the exchequer nearly Rs 48,000 crore. The Council has prioritised immediate consumption stimulus over sectoral relief for the creative economy.

Finance Minister Sitharaman, however, noted that GST rationalisation will continue to be reviewed, leaving open the possibility that print, advertising and OOH could be considered in future rounds. For now, the industry’s call for urgent relief to ease liquidity and revive ad spends remains unmet.