Publishers’ body AIM seeks GST relief on digital and print inputs

New Delhi: The Association of Indian Magazines (AIM) has urged the GST Council to review the current tax structure for the publishing industry, seeking urgent relief to safeguard the sector’s sustainability.

The body’s key demands include:

1. Exempting digital magazines and newspapers from GST.
   
   
2. Reducing GST on lightweight coated (LWC) paper up to 70 gsm to 5%, or exempting it entirely.
   
   
3. Reducing or exempting GST on cover paper to 5%.
   
   
4. Allowing full input tax credit (ITC) for newspapers and magazines.
   
   

In its representation, AIM noted that while printed newspapers and magazines are exempt from GST, their digital editions attract an 18% levy.

“In today’s world, digital editions are no longer optional add-ons. They are becoming indispensable to how Indians consume magazines and newspapers. With readers spread across smaller towns and remote areas, and increasingly consuming content on smartphones, digital editions are the only way to ensure affordable, equitable access,” AIM wrote.

The body explained that if publishers keep the MRP of digital editions equal to print to avoid confusion, the 18% GST directly reduces their net realisation. If the MRP is increased to offset GST, readers end up paying more for the same content, discouraging digital adoption.

AIM also called for a reduction in taxes on print inputs, recommending that LWC paper up to 70 gsm be taxed at 5% and parity ensured with newspapers. For the cover paper, it asked for the rate to be brought down from 18% to 5%. “Such changes will ease cost pressures and help publishers continue offering affordable magazines to readers,” it stated.

Another key demand is the extension of ITC across the supply chain. At present, circulation revenue from newspapers and magazines is exempt from GST, while advertisement revenue attracts 5% GST. AIM argued that since the costs of production are indivisible, the inability to claim ITC on inputs like ink and printing services unfairly increases publishers’ costs.

“To allow full ITC on all inputs for newspapers and magazines, irrespective of the exempt status of circulation revenue, will ensure fairness, help manage rising input costs, and be consistent with the principle that dissemination of knowledge should not be taxed,” it said.

The association also sought clarity on GST applicability to content licensing and syndication arrangements, recommending that such services be zero-rated or taxed at a lower rate in line with global practices.

The magazine industry, AIM noted, continues to face pressure from rising input costs, falling advertising revenues, and the rapid shift of readers to digital platforms. Addressing tax anomalies is, therefore, essential to sustaining diversity in media and protecting quality journalism.

The representation comes ahead of the upcoming GST Council meeting, where several sectors are expected to seek tax rationalisation. AIM stressed that its demands are critical to ensuring parity between print and digital while supporting the survival and growth of India’s magazine ecosystem.