No GST Relief for Indian Media Industry
Despite a rationalization exercise that cut GST rates on over 400 products and services, the Indian media industry’s plea for a tax cut has been denied. Broadcasters, including those providing DTH, IPTV, and digital media services, will continue to be taxed at 18%. This decision comes even as the GST Council lowered the rate for televisions from 28% to 18% to boost consumption.
The industry had pushed for a rate reduction to either 5% or a full exemption, citing several key arguments.
Why Broadcasters Wanted a Rate Cut
- Financial Pressure: News broadcasters claimed that the 18% GST, along with other financial pressures, was squeezing operating margins and putting millions of jobs at risk.
- Consumer Affordability: The All India Digital Cable Federation (AIDCF) argued that a reduced GST rate would make cable TV—a vital source of information and entertainment for millions of families in rural areas and small towns—more affordable and accessible.
- Economic Support: The AIDCF, which represents an industry largely made up of MSMEs, stated that GST relief would allow them to invest in building wired broadband capacity, a key government objective.
- Unfair Treatment: The industry highlighted the disparity with printed newspapers, which are exempt from GST, arguing for a level playing field.
According to the AIDCF, cable TV has a reach of over 6.4 crore households and supports more than 10-12 lakh direct jobs. The organization’s secretary-general emphasized that cable TV is “part of India’s social fabric” and that a GST reduction would not only ease the burden on consumers but also protect livelihoods and help bridge the digital divide.