The News Broadcasters & Digital Association (NBDA), the apex body for television and digital news broadcasters in India, has formally urged Finance Minister Nirmala Sitharaman to address key structural issues within the Goods and Services Tax (GST) framework that are straining the industry’s financial health. In a detailed representation dated August 28, 2025, NBDA President Rajat Sharma outlined two primary demands aimed at easing operational pressures on broadcasters.
The first and most critical concern highlighted is the timing of GST liability on advertising sales. Under the current regime, GST is due at the time of invoicing, as per Section 13 of the Central GST Act, 2017. The NBDA’s representation argues that this creates a severe cash flow mismatch, especially when dealing with government clients like the Directorate of Advertising and Visual Publicity (DAVP), public sector undertakings (PSUs), and state governments, which are notorious for delayed payments. The association has requested a fundamental shift in the taxation point from “invoice issuance” to the “actual receipt of payment.” This change, they argue, would align tax outflows with cash inflows, reducing the financial strain on broadcasters who often bear the GST burden for extended periods before receiving their revenue.
Secondly, the NBDA has requested a relaxation of restrictions on Input Tax Credit (ITC) for certain essential operational expenses. The association noted that under Section 17(5) of the GST Act, ITC is currently blocked on expenditures such as the hire of vehicles, food and beverages, and employee insurance. The NBDA pointed out that these are not luxury items but operational necessities for a 24×7 broadcasting environment. Allowing ITC on these expenses, the association stated, would reduce overheads, improve financial health, and create a more equitable business environment.
The NBDA’s plea comes as the broadcasting sector continues to grapple with tight margins, rising costs, and competition from unregulated digital platforms. The association believes that addressing these two specific concerns would provide much-needed relief and support the growth and sustainability of the news broadcasting industry, which plays a vital role in disseminating news and information to millions of Indians.
Key Highlights:
- Shift in GST Liability: The NBDA has urged the Finance Minister to change the point of GST taxation on advertising sales from the time of invoicing to the actual receipt of payment, citing significant cash flow issues caused by delayed payments from government clients.
- Relaxation on Input Tax Credit (ITC): The association has requested that GST law be amended to allow broadcasters to claim Input Tax Credit on essential operational expenses like vehicle hire and employee insurance, which are currently restricted.
- Addressing Financial Strain: The representation highlights how the current GST framework places an undue financial burden on news broadcasters, particularly due to the mismatch between tax payments and revenue collection.
- Supporting the Industry: The NBDA believes that these proposed reforms are crucial for improving the financial health and operational efficiency of the news broadcasting sector and ensuring its continued sustainability.