M&E Industry Demands Tax Reforms Ahead of Budget 2026: GST, TDS, ITC Roadblocks Flagged

• The Indian Broadcasting and Digital Foundation (IBDF) and Indian Digital Media Industry Foundation (IDMIF) seek comprehensive tax reforms for the M&E sector.
• Key demands include reducing GST on TV and OTT subscriptions from 18% to 5%, citing their public-interest role similar to print media.
• The industry warns against an inverted duty structure if GST rates are cut without corresponding reforms for input services, proposing ITC refunds or lower input GST.
• Operational challenges under GST, such as B2C e-invoicing, ITC utilization restrictions, and SEZ supply rules, need simplification.
• Direct tax reforms sought include extending loss carry-forward benefits (Section 72A) to M&E companies and allowing depreciation on acquired goodwill.

Why It Matters: M&E industry urges Budget 2026 to implement tax reforms, including GST cuts and direct tax parity, for growth.