The All India Digital Cable Federation (AIDCF), the apex body of cable TV operators, has written to Union Information and Broadcasting Minister Ashwini Vaishnaw and Finance Minister Nirmala Sitharaman seeking a reduction in the GST on cable TV services from 18% to 5%.
The appeal comes as Prime Minister Narendra Modi pushes for "next-generation GST reforms", which aim to simplify the tax structure, rationalise rates and ease the financial burden on citizens. With the government considering a two-rate GST framework of 5% and 18%, the broadcasting sector sees a window for long-awaited relief.
Sector Under Financial Strain
Cable TV remains one of India's most affordable and accessible mediums, reaching 6.4 crore households and supporting 10-12 lakh livelihoods. The sector is powered by 852 Multi System Operators (MSOs) and around 1.6 lakh Local Cable Operators (LCOs), many of whom are MSMEs serving small towns and villages.
Despite being recognised as an "essential service" during the pandemic, the sector is struggling with:
- Escalating broadcaster costs - Satellite channel prices have surged nearly 600%, leading to a 35-40% rise in subscription prices for consumers.
- Shrinking margins - Operators face a squeeze as costs rise while consumers resist higher tariffs.
- Unregulated competition from OTT platforms - Digital platforms face fewer tax and regulatory burdens, giving them an edge.
- Shifting consumer habits - The rise of streaming services is eroding traditional cable subscriptions.
Why GST Relief Matters
In its letter, AIDCF argued that cutting GST on cable TV services to 5% could:
- Enhance affordability for middle-class and rural households.
- Support MSMEs and sustain operators facing financial distress.
- Boost Digital India by enabling operators to reinvest in broadband infrastructure.
- Create a level playing field with OTT platforms.
- Protect jobs in the sector, directly and indirectly supporting lakhs of workers.
"The reduction in GST will not only safeguard the viability of MSOs and LCOs but also advance the government's objective of ensuring inclusive digital connectivity," said Manoj P. Chhangani, Secretary General of AIDCF.
The federation urged the government to raise the matter during the upcoming GST Council deliberations, warning that time was critical to protect both consumers and small businesses.
Policy Outlook
Industry experts highlight that while OTT growth is undeniable, cable TV remains the backbone of broadcasting in Tier-2, Tier-3 cities and rural India. Any GST relief would strengthen affordable access to information and entertainment for millions of households, aligning with the government's digital inclusion goals.
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