Reduce GST on TV Ads to 5%, align with print rates: Vikram Sakhuja and Chetan Borkar

Madison World CEO and CFO address the challenges posed by the current TDS regime on media invoices, which he said creates significant cash flow constraints for agencies

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Vishesh Sharma
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Vikram Sakhuja, Chetan Borkar

(Left) Vikram Sakhuja, Chetan Borkar (Right)

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New Delhi: Ahead of the Union Budget 2025, Vikram Sakhuja, Group CEO of Madison Media and OOH, and his CFO Chetan Borkar advocated for lowering the GST on television advertising from 18% to 5%, aligning it with print media to create a more balanced media landscape. 

"This would help traditional media compete more effectively with digital giants. The argument for print 5% was that it was disseminating news and playing an educational role plus needed incentive to not decline. TV plays more of an entertainment role, but also has a knowledge dissemination role, and is currently facing growth headwinds from Digital,” the leaders told BestMediaInfo.com.

“There are 900 TV channels whose future is uncertain. To promote a more balanced media ecosystem not controlled by a few digital tech majors, a lower GST will help,” they said.

The top leadership of the agency also addressed the challenges posed by the current TDS regime on media invoices, which he said creates significant cash flow constraints for agencies. "Do away with TDS on full Media invoice given that it constitutes a significant part of Media Agency Commission Revenues and slow recovery process creates cash flow constraints for agencies.”

“If not, then lower the TDS on agencies from the current levels to 0.1% or 0.25% (Will bring down the yearly refunds),” they added.

Focusing on easing financial pressures and fostering growth, Sakhuja and Borkar also emphasised the importance of investment in talent and technology to strengthen the advertising industry and stimulate the economy.

Sakhuja and Borkar emphasised the need for measures to ease financial burdens on agencies and encourage investment in talent and technology.

"The advertising industry plays a crucial role in driving economic growth," said the agency leaders. "By addressing some of the key challenges we face, the government can unlock further potential in this sector."

Recognising the growing importance of AI in advertising, Sakhuja and Borkar urged the government to provide tax incentives for agencies investing in training and development. "Upskilling our workforce in AI and technology is crucial for the future of the industry. To encourage this, allow 50% of investments in this training and development to be set off from tax payable,” they stated.

Beyond direct support for the advertising sector, Sakhuja emphasised the need for broader economic measures to boost consumer spending. "Putting more money in the hands of consumers will ultimately drive demand and fuel economic growth," Sakhuja asserted.

Borkar then went ahead to call for simplified GST compliance procedures, including reduced filing frequency and a single tax return for all state registrations.

He said, “Reduce the number and periodicity of the return filing, One tax return (per company) for all state registrations.”

Both Sakhuja and Borkar also recommended shielding service recipients from penalties for non-compliance by service providers, as long as a valid tax invoice is present.

Lastly, they proposed extending the payment timelines for MSMEs from 45 to 60 days to improve cash flow for agencies.

"We believe these measures will not only benefit the advertising industry but also contribute to overall economic growth," concluded the agency leaders. "We urge the government to consider these recommendations seriously in the upcoming budget."

Madison World GST print tv ads print media Vikram Sakhuja
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