GST Reforms: NBDA urges FM Sitharaman for immediate relief

New Delhi: The News Broadcasters and Digital Association (NBDA) has written to Finance Minister and GST Council Chairperson Nirmala Sitharaman seeking urgent reforms in the Goods and Services Tax (GST) regime that it says are hampering the financial health and operational efficiency of the industry. 

The apex body representing television and digital news broadcasters, in the letter, was represented by NBDA president Rajat Sharma. Sharma, who is the chairman and editor-in-chief of India TV, in his letter, highlighted two critical concerns that, according to the industry, have become persistent pain points under the current tax framework. 

Call for change in point of taxation

The first representation concerns the point of taxation for GST in cases where news broadcasters sell advertising space, particularly to government bodies such as the Directorate of Advertising and Visual Publicity (DAVP), public sector undertakings (PSUs), and state governments.

Under Section 13 of the Central Goods and Services Tax Act, 2017, GST liability is currently triggered at the time of invoicing. NBDA has requested that this be shifted to the point of actual collection or receipt of payment.

The association argued in its letter that broadcasters often face significant delays in receiving payments from government agencies. In such circumstances, paying GST at the invoicing stage places a financial burden on broadcasters, who must discharge their tax liability even before receiving the corresponding revenue.

NBDA has therefore urged the government to align the GST payment obligation for advertising transactions with the actual receipt of funds, at least in the case of government-related advertisers.

Plea for wider Input Tax Credit

The second request outlined in the NBDA’s representation pertains to Input Tax Credit (ITC). Presently, Section 17(5) of the GST Act restricts ITC on a number of expenses, including the hire of vehicles, food and beverages or outdoor catering, beauty treatments, and insurance coverage for employees.

NBDA has sought that ITC on these categories of expenditure be permitted for television and digital news broadcasters. According to the association, these items form part of the industry’s regular costs of operation and, if disallowed, increase the effective tax burden.

By permitting ITC on these expenditures, NBDA said, the government would ease operational costs and improve efficiency for broadcasters, who must routinely rely on services such as hired vehicles and employee insurance in the course of newsgathering and production.

The association emphasised that both issues, the timing of GST liability and the denial of ITC on specified expenses, are directly linked to the financial stability of news broadcasters. NBDA stressed that resolving these concerns would provide relief to an industry working under tight financial constraints while continuing to serve its public role in disseminating news and current affairs.