Ahead of the upcoming GST Council meeting on 3rd and 4th September 2025, television and digital news broadcasters have urged Finance Minister Nirmala Sitharaman to address two key issues impacting the industry's financial health-timing of tax liability on advertising revenues and restrictions on ITC.
In a letter dated 28 August 2025, the News Broadcasters & Digital Association (NBDA) requested that the point of taxation for the sale of advertising space, particularly to government agencies, PSUs and state governments, be shifted from the invoicing stage to the actual receipt of payments.
Currently, GST liability arises at the time of invoice issuance or advance receipt, which broadcasters argue creates significant cash flow stress. With credit periods often extending to 120-180 days, broadcasters are forced to pay GST upfront on revenues they have not yet received. This mismatch, coupled with the risk of non-payment in cases of government change, has led many broadcasters to borrow at high interest rates to meet tax obligations.
The NBDA also pressed for ITC relaxation on certain business expenses currently blocked under the CGST Act, 2017. These include vehicle hire for reporters, food and catering, beauty treatments, and employee insurance coverage. The association believes that allowing ITC on such expenditures would improve operational efficiency and create a more equitable tax environment for the news broadcasting sector.
The GST Council, chaired by Sitharaman, is scheduled to deliberate on multiple reform proposals, including rationalising tax rates to 5% and 18%, while maintaining a higher 40% rate on sin and luxury goods. Broadcasters are hopeful that their demands will be considered in these discussions, as relief on taxation norms could significantly strengthen the sector's financial sustainability.
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