MIB secretary Sanjay Jaju requested to remove GST or at least cut down it from 18% to 5% on digital news subscriptions (Image: Press Information Bureau)
In a letter dated July 22, the Ministry of Information and Broadcasting (MIB) secretary Sanjay Jaju requested to remove GST or at least cut down it from 18% to 5% on digital news subscriptions. The letter was sent to the Ministry of Finance urging the authorities to exempt GST on online news subscriptions.
He wrote that the print media were exempted from GST charges on account of the news significance and authenticity they carry as the news media play a pivotal role in spreading information on various topics to let people know what’s happening in the world. He addressed the disparity between print media and digital news and stated that the GST on E-books have been reduced to 5% from 18% in 2018.
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The total number of paid customers for digital news is comparatively small compared to the overall accounts accessing online news or bouncing toward digital news websites. It is a fact that the higher GST is affecting the growth of online news portals as the websites rely upon advertisements and work on clickbait which questions the credibility of news portals, he added.
It is indispensable to recognise the importance of the credibility of news and due to higher GST websites see fewer subscriptions which would further force them to execute other revenue-generating plans. Since the print media are exempted from GST, digital media platforms deserve to be valued considering the growing internet penetration, the letter read.
He also said that the news industry brings about Rs 21.6 crore tax revenue through 18% GST on over Rs 120 cr0re digital news subscriptions, If the subscription GST goes down to 5% it will not be a burden to the government’s revenue in any aspect, Sanjay Jaju said.
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