AIM urges GST Council to remove anomalies hurting magazine industry

AIM has written to the GST Council highlighting long-standing issues faced by the magazine publishing industry and seeking urgent reforms in the forthcoming restructuring of the GST framework.

In a letter dated August 27, 2025, the Association of Indian Magazines (AIM) — which represents more than 40 publishers and over 200 magazine titles in 10 languages, reaching 150 million Indians — urged the government to align tax policies with the evolving needs of print and digital publishing.

AIM welcomed Prime Minister Narendra Modi’s announcement of a comprehensive reform of the GST regime aimed at equity and ease of doing business, but underlined several critical anomalies that are hurting the sector:

1. GST on digital editions – While physical magazines and newspapers are exempt from GST, their digital editions attract 18%. AIM argued this goes against India’s long-standing policy of not taxing knowledge, unfairly penalizing digital adoption at a time when readers increasingly consume content online. It asked for complete GST exemption on digital editions, ensuring parity with print.
2. GST on newsprint and Light Weight Coated (LWC) paper – AIM pointed out that newsprint attracts only 5% GST, while LWC paper (used primarily by magazines) is taxed at 12%, despite both being essential publishing inputs. It urged the Council to withdraw GST on LWC up to 70 gsm or at least reduce it to 5%.
3. GST on cover paper – The thicker cover paper used in magazines is currently classified with commercial packaging material and taxed at higher rates. AIM has sought either an exemption for registered publishers or a reduction to 5% GST, similar to newsprint.
4. Input Tax Credit (ITC) – Publishers are currently allowed only proportionate ITC, since circulation revenue is exempt from GST. AIM stressed that this unfairly increases costs, as production expenses are indivisible between circulation and advertisements. It requested full ITC on all inputs, irrespective of circulation revenue being exempt.

The association emphasized that the magazine industry is grappling with rising input costs, shrinking advertising revenues, and digital disruption, and said a rationalized GST structure would be crucial to ensuring its survival and growth.

AIM President Anant Nath, in signing off the representation, urged the Council to consider these reforms in line with the Prime Minister’s vision of a business-friendly and efficient GST framework that does not undermine knowledge dissemination.