New Delhi: The News Broadcasters & Digital Association (NBDA), representing leading television and digital news broadcasters across India, has called on the government to ease Goods and Services Tax (GST) norms that it says are burdening the financial health of the industry.
In a formal representation to Finance Minister and GST Council Chairperson Nirmala Sitharaman, NBDA President Rajat Sharma highlighted two pressing concerns affecting broadcasters: the point of taxation on advertising sales and restrictions on input tax credit.
Sharma noted that under the current regime, GST liability on the sale of advertising space arises at the time of invoicing. This, he said, creates severe cash flow challenges, particularly in cases involving government clients such as the Directorate of Advertising and Visual Publicity (DAVP), public sector undertakings (PSUs), and state governments — all known for delayed payments. NBDA has requested that the taxation point be shifted to the actual receipt of payment, a move that would align liability with cash realization and relieve pressure on broadcasters.
The association has also asked the government to revisit Section 17(5) of the CGST Act, which disallows input tax credit (ITC) on certain expenditures. These include costs for vehicle hire, catering and food & beverages, employee insurance, and other staff-related expenses. NBDA argues that these are integral to the functioning and welfare of employees in the news broadcasting industry and should therefore qualify for ITC.
“These reforms are critical to ensuring the financial sustainability and operational efficiency of broadcasters who provide round-the-clock news to millions of Indians,” Sharma emphasized in the representation.
The Finance Ministry is expected to review the proposal ahead of upcoming GST Council deliberations. Industry stakeholders say any positive move could provide much-needed relief to news broadcasters grappling with tight margins and delayed advertiser payments.
