Budget
India’s media lobby demands GST cuts as linear TV bleeds cash
NEW DELHI: India’s embattled media industry has launched a pre-budget offensive, demanding sweeping tax relief to stop linear television from collapsing and digital platforms from drowning in disputes.
The Indian Broadcasting & Digital Foundation (IBDF) and the Indian Digital Media Industry Foundation (IDMIF) want the government to slash GST on subscriptions from 18 per cent to 5 per cent, warning that current rates are strangling affordability whilst trapping billions in working capital.
Traditional television is haemorrhaging cash. Rising costs, shrinking advertising revenue and brutal cash-flow constraints are squeezing broadcasters just as viewers migrate to streaming platforms. Digital services, meanwhile, face mounting litigation as complex supply chains and evolving business models trigger tax ambiguity at every turn.
Kevin Vaz, president of both foundations and chief executive of entertainment at JioStar, cast the appeal in national terms. “Television and online curated content services have become essential, mass-access platforms for millions of Indian households, providing dependable access to entertainment, sports, news and learning,” he said. “At a time when the media ecosystem is navigating structural shifts, it is important that the tax framework reflects the public value and scale of these services.”
Vaz argued that rational GST reform could drive adoption. “A more rational and contemporary GST approach can make subscriptions more affordable, support wider adoption, and meaningfully enhance disposable incomes, especially in price-sensitive markets,” he said. “Such reforms would not only help revive consumer demand and strengthen the media and entertainment value chain, but also advance national priorities of Digital India, ease of doing business and inclusive growth.”
The industry wants more than a rate cut. It demands parity across platforms—so broadcast and streaming services face identical tax treatment—and fixes for the inverted duty structure that leaves input tax credits stranded even when companies are owed refunds.
Working-capital relief sits at the heart of the pitch. Broadcasters want GST liability on government contracts tied to actual payment receipt, complaining that dilatory state agencies force them to fund tax bills upfront. They also seek permission to use input tax credits against reverse-charge liabilities, arguing the current ban drains cash whilst credits sit unused.
For operators working across multiple states, the groups proposed a large-taxpayer unit under GST to consolidate audits and end the chaos of overlapping state scrutiny. They flagged technical glitches in the GST network, particularly state-level validations that block input credit transfers during mergers, as needless barriers to consolidation.
On direct taxes, the industry pushed for an amendment to Section 72A of the Income Tax Act to allow loss carry-forwards in media mergers, bringing the sector into line with other services. It also wants the domestic definition of “royalty” aligned with tax treaties to settle recurring disputes over withholding tax on transponder hire charges.
Avinash Pandey, secretary general of IBDF, framed affordability as the lever for reach. “At the heart of IBDF-IDMIF budget submission is a simple principle: affordability drives accessibility,” he said. “When the cost of a television or digital subscription is reduced, its power to inform, educate, and unify the nation is multiplied.”
Pandey pressed the argument further. “A rationalisation of the GST structure is not just a fiscal correction; it is an investment in a more connected and digitally inclusive India,” he said. “It will put money back into the hands of consumers, stimulate the creative economy, and ensure that the primary screens of modern India are within reach of every household, thus truly powering the vision of a self-reliant and digitally empowered society.”
The foundations have set Budget 2026-27 as a litmus test. Without certainty, faster refunds and cash-flow relief, they warn, the sector’s ability to fund content and technology upgrades will remain crippled—and India risks watching its own media industry wither whilst global platforms feast.
MUMBAI: Anuj Singhal, managing editor at CNBC- AWAAZ and CNBC BAJAR, operates at the sharp end of India’s business news ecosystem. With over two decades in business journalism, he has earned credibility for decoding policy, markets and macro trends for millions of Hindi-speaking investors. Equal parts newsroom leader and market analyst, he shapes editorial direction while anchoring flagship shows that break down the economy, politics and corporate India in real time.
Known for cutting through jargon and hype, Singhal blends data, discipline and clarity — a mix that has made him one of the most trusted voices in Hindi business news.
In this interaction, he discusses the Union Budget, trade deals, newsroom strategy and what truly moves markets and ratings.
• What was the single most market-moving announcement in this Budget, and why?
The most market-moving element was the clear commitment to fiscal consolidation without compromising capex. The glide path on fiscal deficit reassured bond markets and foreign investors, while sustained public investment kept growth expectations intact. That balance removed a big overhang for both equities and debt.
• Do you see this Budget as growth-oriented, fiscally cautious, or politically calibrated?
This Budget is growth-led but fiscally disciplined. It avoids overt populism, stays within macro guardrails, and prioritises medium-term competitiveness over short-term optics. Politically, it is restrained; economically, it is deliberate. The message is clear: stability over spectacle.
• How is CNBC-AWAAZ programming different, especially in decoding trade deal impact?
CNBC-AWAAZ goes beyond headline reaction. We translate policy into portfolio impact — sector by sector, stock by stock.
On trade agreements, our focus is on:
-Earnings visibility
-Export competitiveness
-Currency implications
-Margin sustainability
We don’t treat trade deals as political milestones. We decode them as profit-and-loss events for corporate India and map them to FY earnings trajectories.
• Which sectors look like clear winners and laggards over the next 12–18 months?
The next 12–18 months favour sectors aligned with structural spending and supply-side strengthening.
– Clear beneficiaries:
Capital goods and infrastructure
Manufacturing linked to export chains and PLI ecosystems
Power, defence, and logistics
– Relative laggards:
Consumption segments dependent on immediate demand revival
Businesses facing margin pressure from global volatility or pricing power erosion
This is not a momentum-driven market environment. It is execution-driven. Balance-sheet strength and order visibility will matter more than narrative.
• One headline to sum up this Budget 2026 for India Inc?
“Steady Hands, Long-Term Vision: A Budget That Rewards Discipline Over Drama”.
• What editorial filters do you apply before calling something ‘market-positive’ or ‘negative’?
We apply three structured filters:
– First: Earnings translation — does this materially change earnings visibility or cash flow outlook?
– Second: Time horizon — is the impact immediate, cyclical, or structural?
– Third: Valuation context — good news priced in or not.
If a policy doesn’t move earnings or risk perception, we don’t oversell it.
• How has business news consumption changed around big policy events?**
There has been a clear behavioural shift. They’re less interested in what was said, more in what it means for their money. There’s also a clear shift toward second-screen consumption, with digital platforms complementing live TV. The audience seeks sharper accountability. Viewers no longer accept broad optimism or pessimism — they want frameworks, numbers, and sector mapping.
• CNBC-AWAAZ decisively outperformed on Budget Day. What editorial and distribution choices mattered most?
Three deliberate strategic choices:
– Preparation depth:
We build scenarios months in advance — deficit ranges, sectoral incentives, tax calibrations — so we’re ready with analysis the moment numbers are announced.
– Language of impact:
We translate macro policy into investor-friendly Hindi without diluting complexity. That bridges accessibility and sophistication.
– Integrated distribution:
Television, YouTube, and digital platforms operate as one editorial grid, not parallel silos. This ensures continuity of narrative.We stayed analytical while others stayed reactive.
• How different is your YouTube audience from your TV audience?
The behavioural differences are subtle but important. TV audiences prioritise authority, structured debate, and context. YouTube audiences want speed, clarity, and actionable insights — often sharper, sometimes more opinionated. However, both share one expectation: accuracy. The format evolves; the trust benchmark does not.
• How do you retain viewers after the budget speech ends?
By shifting from announcements to implications.Retention comes from shifting the narrative from announcement to implication. We break down sectoral breakouts, stock-level impact, and what to do next. The speech is just the trigger; analysis is the destination.
• Is Budget Day your biggest traffic day?
It is one of the biggest — but more importantly, it is among the deepest in engagement. Viewers spend longer durations, revisit segments, and seek follow-up programming. That indicates behavioural trust, not just traffic.
• What’s the first thing you personally track on Budget Day — the speech or the markets?
The markets. They’re the fastest truth-teller. The speech explains intent; markets reveal interpretation.
• Your personal Budget-day ritual?
Early morning prep, minimal distractions, and once the speech begins, complete immersion. For me, Budget Day is less about reaction and more about reading between the lines.
• What drove your Budget-day ratings dominance, and how are Budget and trade deals shaping markets now?
Our dominance came from credibility, consistency, and clarity.
As for markets, both the Budget and recent trade deals are reinforcing a narrative of policy stability and global integration, which supports valuations even amid global volatility.
For Singhal, the market is the final judge. Policies can promise and speeches can persuade, but prices reveal what investors truly believe. As India’s investor class grows more informed and more demanding, business journalism is shifting from commentary to calibration. The premium is on clarity, context and credibility. In a landscape flooded with noise, the real edge lies in interpretation. In the end, the markets listen to numbers, not narratives , and Singhal’s craft is helping viewers tell the difference.
