GST reforms: Media and advertising industry piles pressure on govt for urgent tax relief

New Delhi: With the GST Council scheduled to meet soon, some of India’s most influential media and advertising bodies have stepped up lobbying for the rationalisation of tax rates and the removal of anomalies. 

The Association of Indian Magazines (AIM), the News Broadcasters and Digital Association (NBDA), and the Indian Outdoor Advertising Association (IOAA) have all made detailed representations to Finance Minister and GST Council Chairperson Nirmala Sitharaman, arguing that the current structure is undermining the financial viability of publishers, broadcasters and outdoor media owners.

Industry leaders and agencies, meanwhile, are also expecting broader reforms under the Prime Minister’s promise of a simplified GST framework, which could reshape the economics of advertising, marketing and media.

The Association of Indian Magazines (AIM) has flagged what it calls “unjust discrimination” in the GST regime.

While printed newspapers and magazines are exempt, their digital counterparts attract an 18% GST. AIM argued that digital products are no longer “add-ons” but central to how Indians consume media, especially in tier-II and tier-III towns and on smartphones.

“In today’s world, digital editions are indispensable. They are the only way to ensure affordable, equitable access to journalism across smaller towns and remote areas,” AIM said in its representation.

AIM explained the practical bind publishers face: if cover prices for digital and print editions are kept equal to avoid confusion, GST directly reduces their net realisation. If the price is raised to offset GST, readers end up paying more for the same content, discouraging digital adoption.

In total, AIM has called for reducing GST on lightweight coated (LWC) paper up to 70 gsm to 5% or exempting it, bringing down GST on cover paper from 18% to 5%, allowing full input tax credit (ITC) on all inputs such as ink, printing and services, regardless of circulation revenue being exempt and also urged clarity on GST applicability for content licensing and syndication, suggesting these should be zero-rated or taxed at a lower rate in line with global practices.

The association warned that the magazine industry continues to reel under rising costs, falling ad revenues, and rapid digital migration, making tax rationalisation critical to its survival.

The News Broadcasters and Digital Association (NBDA), led by president Rajat Sharma, has highlighted two pressing concerns.

Under Section 13 of the GST Act, liability arises at invoicing. For broadcasters, this is especially burdensome when dealing with government clients such as DAVP, PSUs and state governments, where payments are routinely delayed.

“In such circumstances, paying GST at the invoicing stage places a financial burden on broadcasters, who must discharge tax liability even before receiving revenue,” NBDA argued.

The association has requested that GST liability be shifted to the point of actual receipt of payment, at least for government advertisers.

Currently, Section 17(5) of the GST Act blocks ITC on several categories, including hired vehicles, food and catering, beauty treatments, and employee insurance. NBDA pointed out that many of these are operational necessities in news production and newsgathering.

“If ITC on such expenditures is permitted, it would reduce operational costs and improve efficiency for broadcasters,” the letter stated.

NBDA underlined that both issues—tax timing and ITC restrictions- are directly tied to the financial stability of broadcasters, who continue to operate under pressure from declining revenues and high compliance costs.

The Indian Outdoor Advertising Association (IOAA) has focused on the 18% GST slab for outdoor advertising, which it called “disproportionately high.”

The body said the rate discourages smaller advertisers and MSMEs from using outdoor media, stunting growth in a sector that plays a crucial role in local marketing. Much outdoor advertising is tied to PPP projects that finance civic amenities such as bus shelters, public toilets, street furniture, and signage. IOAA said the high GST rate is weakening the financial model that sustains these public-benefit projects.

In total, IOAA has demanded to reduce GST on outdoor advertising from 18% to 5%, exempt GST on PPP-linked outdoor projects to encourage private participation in urban development and recognise the public service contribution of outdoor media via tax concessions.

“Outdoor advertising is a vital channel for marketing, yet it remains under-prioritised. Reducing GST will make it more accessible and allow PPP projects to continue delivering crucial amenities,” IOAA said.

Alongside these sectoral demands, the advertising and marketing fraternity is hoping for structural simplification.

According to Prakhar Srivastava, VP – Financial Planning & Corporate Strategy at White Rivers Media, the biggest expectation is a clearer, smoother compliance framework.

“Clearer rules on what qualifies as ‘export of services’ for international mandates, faster refunds and reduced paperwork would reduce disputes and improve liquidity,” he said.

Shradha Agarwal, Co-founder & Global CEO, Grapes Worldwide, said reforms could bring consistency and simplicity. “Multiple interpretations and cumbersome compliance create friction for agencies and clients. Streamlining taxation will make the sector more efficient,” she observed.

Adman Sandeep Goyal, MD of Rediffusion, noted that GST rationalisation is likely to benefit consumption-driven sectors such as automobiles, consumer durables, FMCG, apparel, textiles and agriculture. “This will, in turn, create a more conducive environment for advertising and promotion,” he said.

Srivastava added that digital advertising would gain the most, especially if the equalisation levy on cross-border ads is absorbed into GST, lowering campaign costs on global platforms.

Agencies also want clear rules around non-cash consideration in influencer marketing, a fast-growing segment.