Online news subscriptions are subject to an 18% tax under the IGST Act since they are considered Online Information Database Access and Retrieval (OIDAR) services.
According to sources, the Finance Ministry is anticipated to examine the rates of goods and services tax (GST) imposed on subscriptions for digital news.
According to other sources, the Finance Ministry received a recommendation from the Information and Broadcasting Ministry to lower the GST rate on digital news subscriptions.
The internet media sites have been calling for a five percent GST rate instead of the current eighteen percent.
According to the Ministry of Information and Broadcasting, lowering the GST on digital news organizations is necessary to prevent a change in their funding model, which will affect the caliber of the stories they produce.
September 9, 2024, is the planned date of the Goods and Services Tax (GST) Council meeting in New Delhi.
A post on X on August 13th announced the news, saying, "The 54th GST Council Meeting will be held on September 9th, 2024, in New Delhi."
At the moment, printed publications, journals, and newspapers are free from the GST.
Online information database access and retrieval (OIDAR) services, or internet services without a physical link between the provider and the recipient, are subject to an 18% tax under the IGST Act. This includes subscriptions to online news sources.
The subcategory of services for "supply of images, text, and information and making available of databases" includes subscriptions to online news sources.
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