India’s media lobby demands GST cuts as linear TV bleeds cash

NEW DELHI: India’s embattled media industry has launched a pre-budget offensive, demanding sweeping tax relief to stop linear television from collapsing and digital platforms from drowning in disputes.

The Indian Broadcasting & Digital Foundation (IBDF) and the Indian Digital Media Industry Foundation (IDMIF) want the government to slash GST on subscriptions from 18 per cent to 5 per cent, warning that current rates are strangling affordability whilst trapping billions in working capital.

Traditional television is haemorrhaging cash. Rising costs, shrinking advertising revenue and brutal cash-flow constraints are squeezing broadcasters just as viewers migrate to streaming platforms. Digital services, meanwhile, face mounting litigation as complex supply chains and evolving business models trigger tax ambiguity at every turn.

Kevin Vaz, president of both foundations and chief executive of entertainment at JioStar, cast the appeal in national terms. “Television and online curated content services have become essential, mass-access platforms for millions of Indian households, providing dependable access to entertainment, sports, news and learning,” he said. “At a time when the media ecosystem is navigating structural shifts, it is important that the tax framework reflects the public value and scale of these services.”

Vaz argued that rational GST reform could drive adoption. “A more rational and contemporary GST approach can make subscriptions more affordable, support wider adoption, and meaningfully enhance disposable incomes, especially in price-sensitive markets,” he said. “Such reforms would not only help revive consumer demand and strengthen the media and entertainment value chain, but also advance national priorities of Digital India, ease of doing business and inclusive growth.”

The industry wants more than a rate cut. It demands parity across platforms—so broadcast and streaming services face identical tax treatment—and fixes for the inverted duty structure that leaves input tax credits stranded even when companies are owed refunds.

Working-capital relief sits at the heart of the pitch. Broadcasters want GST liability on government contracts tied to actual payment receipt, complaining that dilatory state agencies force them to fund tax bills upfront. They also seek permission to use input tax credits against reverse-charge liabilities, arguing the current ban drains cash whilst credits sit unused.

For operators working across multiple states, the groups proposed a large-taxpayer unit under GST to consolidate audits and end the chaos of overlapping state scrutiny. They flagged technical glitches in the GST network, particularly state-level validations that block input credit transfers during mergers, as needless barriers to consolidation.

On direct taxes, the industry pushed for an amendment to Section 72A of the Income Tax Act to allow loss carry-forwards in media mergers, bringing the sector into line with other services. It also wants the domestic definition of “royalty” aligned with tax treaties to settle recurring disputes over withholding tax on transponder hire charges.

Avinash Pandey, secretary general of IBDF, framed affordability as the lever for reach. “At the heart of IBDF-IDMIF budget submission is a simple principle: affordability drives accessibility,” he said. “When the cost of a television or digital subscription is reduced, its power to inform, educate, and unify the nation is multiplied.”

Pandey pressed the argument further. “A rationalisation of the GST structure is not just a fiscal correction; it is an investment in a more connected and digitally inclusive India,” he said. “It will put money back into the hands of consumers, stimulate the creative economy, and ensure that the primary screens of modern India are within reach of every household, thus truly powering the vision of a self-reliant and digitally empowered society.”

The foundations have set Budget 2026-27 as a litmus test. Without certainty, faster refunds and cash-flow relief, they warn, the sector’s ability to fund content and technology upgrades will remain crippled—and India risks watching its own media industry wither whilst global platforms feast.