The Ministry of Information and Broadcasting (I&B) has urged the Department of Revenue to take initiatives for exempting digital news subscriptions from the Goods and Services Tax (GST) or bringing it down to 5% from 18%. 

“In a letter to the Department last month, the I&B Secretary had written to the Revenue Secretary in this regard, recommending that either the GST on digital news subscriptions be removed or be rationalised and brought down to 5% on par with that of e-books,” said an official. 

The matter may be taken up again in the next and 54th GST council meeting scheduled to be held on September 9. It was on the agenda of the 50th GST Council meeting on July 11, 2023, but it did not recommend the proposal. Since then, there has been a status quo. 

According to sources, the I&B Ministry is of the view that a higher tax rate may result in the online news sector leaning towards advertising-based revenue model, which may adversely impact the quality and credibility of news content. Given the expanding Internet user-base in the country and a fledgling online news sector, an exemption from GST or rationalisation will be a positive step. Print newspapers, journals, and periodicals are exempted from the GST.

“The issue was initially brought to the notice of the I&B Ministry by a news digital media body, following which it was examined and has been taken up with the Finance Ministry,” the official said.