GST
Broadcast Ministry Seeks GST Exemption for Digital News Subscriptions

Ministry Urges Reduction of GST on Digital News Subscriptions

The Information & Broadcasting (I&B) Ministry has urged the Ministry of Finance to consider reducing the GST on digital news subscriptions. In a letter dated July 22, I&B Secretary Sanjay Jaju emphasized the need to either exempt digital news subscriptions from GST or reduce the current rate of 18% to 5%.

Highlighting the importance of providing “correct and factual information” to citizens, Jaju pointed out that newspapers are currently exempt from GST due to this recognized significance. He also referenced the GST Council’s decision in 2018 to reduce the GST rate on e-books from 18% to 5%, addressing a similar distinction between printed books and e-books.

The letter emphasized the potential impact of a higher GST rate on digital news subscriptions, stating, “The number of paid subscribers for online news in India is very small as compared to the overall number of users accessing news on the internet. In this regard, it is observed that a higher rate of GST on digital news subscriptions may skew further growth of the online news sector towards an advertising model which may impact the quality and credibility of the news content on the internet through practices such as the use of clickbait and sensational headlines, and fake and misleading news, etc.”

Recognizing the significance of providing accurate information to the citizens and considering the growing internet penetration in India alongside the nascent stage of the online news industry, Secretary Jaju proposed that online news subscriptions be treated at par with printed newspapers or e-books for GST purposes.

Moreover, it was noted that the current 18% GST on the Rs 120 crore online news subscriptions industry brings in tax revenue of about Rs. 21.6 crore. Secretary Jaju suggested that a reduction in the GST on digital newspaper subscriptions may not lead to substantial revenue loss by the Government exchequer.

The I&B Ministry’s efforts to address the disparity in GST rates between different forms of media reflect a commitment to fostering the growth and accessibility of digital news while upholding the standards of quality and credibility in the online news landscape.

Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked...