Industry Body IOAA Urges Government to Slash GST on Outdoor Advertising to 5%

On August 21, 2025, the Indian Outdoor Advertising Association (IOAA) has made a significant appeal to the Indian government, urging a reduction in the Goods and Services Tax (GST) on outdoor advertising from the current 18% to a more manageable 5%.

This request, directed towards Finance Minister Nirmala Sitharaman, highlights the growing concerns within the sector regarding the adverse impact of the existing tax rate on its development and sustainability. The move is seen as a critical step to alleviate the financial burden on businesses, particularly small enterprises, and to foster an environment conducive to growth in the outdoor advertising industry.

The IOAA’s proposal comes at a time when the outdoor advertising sector is grappling with challenges posed by the high GST rate. The association argues that the current 18% tax is stifling the industry’s potential, hindering its ability to expand and innovate. Outdoor advertising, which includes billboards, hoardings, and digital signage, plays a vital role in the marketing ecosystem, supporting a wide range of businesses from multinational corporations to local enterprises. However, the elevated tax rate has been identified as a major impediment, especially for small businesses that lack the financial resilience to absorb such costs. These businesses often rely heavily on outdoor advertising to reach their target audiences, and the high GST is seen as a barrier to their competitiveness.

In addition to the proposed GST reduction, the IOAA has called for a complete exemption from the tax for Out-of-Home (OOH) projects that are linked to Public-Private Partnership (PPP) initiatives contributing to civic infrastructure. This exemption is intended to encourage collaboration between the government and private entities in projects that enhance public amenities, such as smart city developments and transportation infrastructure. By linking tax relief to these projects, the IOAA aims to align the interests of the advertising industry with national development goals, creating a win-win scenario for both sectors.

The outdoor advertising industry has experienced steady growth in recent years, driven by the increasing demand for innovative advertising solutions and the rise of digital out-of-home (DOOH) advertising. However, the IOAA contends that the current tax structure is undermining this progress, particularly for smaller players who are struggling to keep pace with larger competitors. The association believes that lowering the GST to 5% would provide much-needed relief, enabling businesses to reinvest in their operations, upgrade technology, and create new job opportunities. This, in turn, could stimulate economic activity within the sector and contribute to broader economic growth.

The IOAA’s request is likely to spark discussions among policymakers as they weigh the potential benefits of tax relief against revenue considerations. The association’s emphasis on the sector’s role in supporting small businesses and civic projects may strengthen its case, prompting a reevaluation of the current GST framework. As the government reviews these proposals, the advertising industry remains hopeful that a more favorable tax regime will unlock its full potential, paving the way for a thriving and resilient market in the years to come.

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