MIB recommends FM to cut GST on digital news subscriptions from 18% to 5%

New Delhi: The Ministry of Information and Broadcasting has recommended the Ministry of Finance either exempt or reduce the goods and service tax (GST) levied on digital news subscriptions to five per cent from 18%, as per media reports.

The report suggests that the I&B Ministry believes a higher tax rate could push the online news sector towards relying more on advertising revenue, potentially affecting the quality and credibility of news content. 

With the growing number of Internet users and the nascent state of the online news industry, granting GST exemption or rationalising the tax rate would be beneficial. Print newspapers, journals, and periodicals already enjoy GST exemption.

It is expected that the concern raised by a digital news media body will be taken up during the 54th GST Council meeting scheduled to be held on September 9, 2024. 

The concern was expected to be taken up during the 50th GST Council meeting on July 11, 2023, however, the meeting did not recommend the proposal, the report highlighted.