OOH industry urges finance minister to rationalise GST

The Indian Outdoor Advertising Association (IOAA), representing leading Out of Home (OOH) Media Owners, has appealed to Finance Minister Nirmala Sitharaman, seeking a reduction in the Goods and Services Tax (GST) rate on outdoor advertising.

In their letter, IOAA has urged the Government to consider the reduction in the GST rate to 5%, emphasizing the need to support small-budget campaigns and encourage urban development.

Currently, outdoor advertising is levied with a GST rate of 18%, which IOAA considers disproportionately high for the sector. This adversely impacts MSMEs, local businesses, and PPP initiatives that contribute to civic infrastructure. 

"Outdoor advertising is a vital channel for marketing, yet it remains under-prioritized, especially for small businesses," said a spokesperson for IOAA. "Reducing GST will make outdoor advertising more accessible and allow PPP projects to continue providing crucial amenities like public toilets, street furniture, bus shelters, and signage—all of which benefit urban communities directly."

IOAA highlighted the public benefit generated from outdoor advertising revenues that help develop and maintain vital civic infrastructure. However, the current high tax rate discourages private investment and threatens the sustainability of these public-benefit projects.

The association has also called for exemption of GST on PPP-linked outdoor advertising projects, thus boosting private sector participation in urban development.

“The government should encourage recognition of the public service contribution of outdoor media owners via tax concessions. The IOAA remains hopeful that the government will consider these recommendations, paving the way for sustainable urban development, increased private investment, and a thriving MSME sector,” the spokesperson stated.