In a letter dated August 28, NBDA President Rajat Sharma outlined two major concerns faced by the industry under the existing Goods and Services Tax (GST) framework.
The first relates to the point of taxation for GST on the sale of advertising space, particularly in dealings with government agencies such as the Directorate of Advertising and Visual Publicity (DAVP), public sector undertakings (PSUs), and state governments.
Currently, GST is levied at the time of invoicing, as per Section 13 of the Central GST Act, 2017. NBDA has requested that this be shifted to the point of actual receipt of payment.
The association noted that government entities often delay payments, creating liquidity pressures for broadcasters who must pay GST upfront despite not having received revenues.
The second issue raised concerns the denial of Input Tax Credit (ITC) on certain expenditures, including vehicle hire, food and beverages or outdoor catering, beauty treatments, and employee insurance coverage, under Section 17(5) of the GST Act. NBDA has appealed for these categories to be made eligible for ITC, arguing that they are essential business costs and their exclusion adds to the financial burden of broadcasters.
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