IOAA appeals to FM for reduction of GST on OOH advertising

The Indian Outdoor Advertising Association (IOAA) has appealed to Finance Minister Nirmala Sitharaman, seeking a reduction in the Goods and Services Tax (GST) rate on outdoor advertising on Friday. The association represents Out of Home (OOH) media owners and works closely with local urban bodies across India.

Currently, outdoor advertising is levied with a GST rate of 18%, which, according to the complaint letter, the association considers disproportionately high for the sector. It noted that this adversely impacts MSMEs, local businesses and PPP initiatives that contribute to civic infrastructure. In their letter, the asscociation has urged the centre to consider the reduction in GST rate to 5%, emphasising the need to support small-budget campaigns and encourage urban development.

Key Requests in the IOAA Submission:

• Reduce GST on outdoor advertising from 18% to 5%.
• Exempt GST from PPP-linked advertising projects that finance civic infrastructure.
• Encourage recognition of the public service contribution of outdoor media owners via tax concessions.

An IOAA spokesperson said, "Outdoor advertising is a vital channel for marketing, yet it remains under-prioritised, especially for small businesses. 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."

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