NEW DELHI: India’s news broadcasters have taken their tax fight to the top. The News Broadcasters & Digital Association (NBDA), led by president Rajat Sharma, has written to finance minister and GST Council chair Nirmala Sitharaman, warning that the current goods and services tax regime is throttling the financial health of television and digital news outlets.
In its 28 August representation, NBDA said the system of taxing advertising sales at the point of invoicing, rather than when payments are actually received, is crippling cash flow. Broadcasters, it noted, are often left waiting months for money from government departments, state agencies, PSUs and even the government’s own ad-buying arm DAVP. Yet GST has to be coughed up immediately, leaving newsrooms to carry the burden of taxes on income not yet in hand.
The association also demanded a rethink of Section 17(5) of the GST Act, which denies input tax credit on everyday operational spends such as vehicle hire, catering, employee insurance and even routine services like beauty treatments required for on-air talent. NBDA argues these restrictions make little sense for an industry that runs on people, mobility and presentation.
Sharma said the relief sought is not a handout but a rational correction. “The changes will align taxation with actual revenue flow and remove arbitrary blocks on legitimate business costs,” the letter states.
The news business, already squeezed by weak advertising growth, digital disruption and rising costs, says it can ill afford such tax distortions. NBDA’s blunt message to North Block: fix the GST rules, or risk further erosion of an industry vital to India’s democracy.
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