Broadcasters Seek GST Cut to 5% on TV and OTT Subscriptions as TV and Radio Ad Revenue Slides

India's broadcasters want GST on TV, OTT and music subscriptions cut from 18% to 5%, as part of a wider set of demands on the government's draft broadcast rules, Storyboard18 reported on 19 October 2026. The asks follow last week's CII Big Picture Summit, where industry body CII set out its response to the draft Telecom (TV/Radio) Rules, 2026.

What the industry wants

• Lower GST: 5% instead of 18% on TV, OTT and music subscriptions.
• Tariff forbearance: full freedom for TV channels to set their own prices.
• No carriage fees: an end to the fees broadcasters pay distributors to carry their channels.
• Fairer enforcement: proportional penalties, clearer definitions and fixed timelines for approvals, the same concerns behind CII's opposition to the proposed five-strike rule.

Radio operators added their own list. Mango FM's Manoj Manthan called for rationalised licence fees, lower GST on radio advertising, permission for private FM stations to run independent news and current affairs, and a rule requiring phones to support FM.

The pressure behind the asks

The case rests on falling advertising. According to the FICCI-EY report published in March 2026, India's media and entertainment sector grew 9% to ₹2.78 lakh crore in 2025, but linear TV ad revenue fell 10% and radio revenue fell 7% to ₹2,300 crore. WPP Media's mid-year forecast expects TV ad revenue to fall a further 6.8% to $4.9 billion in 2026, out of a total Indian ad market of $22.5 billion.

Private FM radio's ad revenue fell 9.1% from the previous quarter to ₹376.16 crore in April to June 2026, according to TRAI figures cited in the report. Television has also been without audience ratings since July, and TV ad activity fell 8.6% between July and September while digital grew 24.5%.