New Delhi: The All India Digital Cable Federation (AIDCF) has called on the government to slash the Goods and Services Tax (GST) on cable television services from the current 18% to 5%, saying the move is critical to protect consumer interests and sustain the struggling industry.
In separate letters to Finance Minister Nirmala Sitharaman and Information & Broadcasting Minister Ashwini Vaishnaw, the federation requested that the issue be included in the upcoming GST Council agenda.
AIDCF represents 852 Multi System Operators (MSOs) and around 1.6 lakh Local Cable Operators (LCOs), many of whom run small-scale businesses in districts and villages. Together, the sector reaches over 6.4 crore households and provides employment to an estimated 10–12 lakh people.
Rising Costs and Shrinking Margins
The federation highlighted that cable operators are under severe financial pressure. Broadcaster channel fees have surged—by as much as 600% in some cases—pushing monthly subscription costs for consumers up by nearly 35–40%. This has not only reduced affordability for households but also narrowed margins for operators.
At the same time, the rapid rise of over-the-top (OTT) streaming services has intensified competition. Unlike cable TV, which is regulated by the Telecom Regulatory Authority of India (TRAI), OTT platforms operate in a comparatively ambiguous regulatory space, creating what the federation terms an “uneven playing field.”
Case for Lower GST
Manoj P. Chhangani, Secretary General of AIDCF, stressed that cable television remains a lifeline for millions, especially in rural and semi-urban India. “Families in small towns and villages continue to gather around cable TV as a shared medium of education, information and culture. A rationalisation of GST to 5% will not only reduce the financial burden on viewers but also preserve lakhs of livelihoods and safeguard an industry that bridges the digital divide,” he said.
The federation argued that lowering GST would:
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Contain further hikes in monthly cable bills, already inflated by rising content prices.
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Ease working capital stress for MSOs and LCOs, the majority of whom qualify as MSMEs.
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Enable operators to invest more in network upgrades and wired broadband expansion.
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Help stabilise subscriber bases by improving affordability and reducing customer churn.
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Create greater parity with competing platforms that enjoy subsidies or operate outside the existing tax and regulatory structure.
Safeguarding a Grassroots Industry
According to AIDCF, without timely tax relief, many smaller operators risk closure, threatening thousands of micro and small enterprises across India. By contrast, placing cable services in the 5% GST bracket, it said, would strengthen the industry’s viability while continuing to serve millions of households that rely on cable as their primary source of information and entertainment.
