The Ministry of Information and Broadcasting has recommended reducing GST on digital/online news subscriptions. The move aims to bring parity with newspapers, journals and periodicals that are exempt from GST.

The Digital News Publishers have been calling for a reduction on GST on digital subscriptions and e-papers. At present, online news subscriptions attract 18% GST under the Integrated Goods and Service Tax (IGST) Act.

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In 2018, the GST Council reduced the GST rate on e-books from 18% to 5%. Now, the Department of Revenue under the Ministry of Finance has called for following the same path for digital/online news subscriptions considering 'growing internet penetration in India'.

The Department of Revenue notes that slashing GST on online news subscriptions is unlikely to impact a substantial revenue loss for the exchequer as at present the tax revenue from the industry is only about Rs 21.6 crore.
Further, in its proposal, the Department of Revenue states that such a decision was imperative to prevent fake and misleading news.

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Agriculture, food processing industry, education, skill development, social security and old age support are some of the services that were provided multiple reliefs from GST taxation in the last six years.

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