IOAA urges government to cut GST on outdoor advertising from 18% to 5%

The Indian Outdoor Advertising Association (IOAA), representing major Out of Home (OOH) media owners and working closely with urban local bodies across India, has urged Finance Minister Nirmala Sitharaman to lower the Goods and Services Tax (GST) rate on outdoor advertising.

Currently, outdoor advertising attracts an 18% GST, which the IOAA considers "excessively high" for the sector. The association argues that this impacts MSMEs, local businesses, and public-private partnership (PPP) initiatives that support civic infrastructure.

In its letter, IOAA has requested a reduction of the GST rate to 5%, stressing the need to make outdoor advertising more affordable for small-budget campaigns and to promote urban development.

Pawan Bansal, the chairman of Indian Outdoor Advertising Association quoted, "Many MSMEs and local  businesses are struggling to allocate funds for outdoor advertising due to the burden of  the current 18% GST rate."

The association also highlighted how outdoor advertising revenues contribute significantly to maintaining civic infrastructure. However, it warned that the high tax burden discourages private investment and threatens the viability of these public-benefit projects.

Additionally, IOAA has called for GST exemption on PPP-linked outdoor advertising projects to encourage greater private sector participation in urban development.

In its representation to the government, the IOAA has outlined three key recommendations:

1. Reduce GST on outdoor advertising from 18% to 5% to boost investment and support MSMEs.
2. Exempt GST on PPP-linked advertising projects that directly fund and maintain civic infrastructure.
3. Acknowledge the public service contributions of outdoor media owners by extending tax concessions.

The IOAA expressed optimism that the government will consider these proposals, which could foster sustainable urban development, encourage greater private participation, and strengthen the MSME ecosystem.