Reduce GST on online news subscriptions to 5%: MIB tells revenue dept

Printed newspapers, journals, and periodicals are presently exempted from the Goods and Services Tax while online news subscriptions at taxed at 18 per cent

The Ministry of Information and Broadcasting (I&B) has proposed to the Revenue Department to consider revising the Goods and Services Tax or GST policy related to digital news subscriptions, Hindustan Times reported.

In a letter, the Ministry urged the department to either exempt digital news subscriptions from the GST or reduce the current rate from 18 per cent to 5 per cent.
 

The I&B Ministry had sent the letter on July 22, recommending that the move would ensure the flow of correct and factual information to the citizens.

The Information and Broadcasting (I&B) Secretary Sanjay Jaju observed that GST is detrimental to the growth of the online news sector, pushing it to an advertising-based revenue model, which is damaging to news credibility.
 

“With the growing internet penetration in India and the nascent stage of the online news industry, it is requested that the disparity between GST on printed newspapers and digital/ online news subscriptions may be addressed by either exempting the GST on the latter or rationalising it from 18 per cent to 5 per cent at par with that on e-books,” the letter reads.
 

At present, printed newspapers, journals, and periodicals are exempted from GST, while online news subscriptions, which fall under the Online Information Database Access and Retrieval (OIDAR) services category, are taxed at 18 per cent under the Integrated Goods and Services Tax (IGST) Act.
 

The report noted that while this proposal was discussed in the GST Council meeting in July, it was not recommended by the body. The GST Council, chaired by Finance Minister Nirmala Sitharaman and consisting of representatives from all States and Union Territories, is empowered to make GST-related decisions.