Tax Incidence on Entertainment Services under GST

 

 

 

Tax Incidence on Entertainment Services under GST

 

 

 

Taxes on entertainments and amusements (covered by the erstwhile entry 62 of State List of the Constitution) have been subsumed under GST except to the extent of taxes on entertainments and amusements levied by a Panchayat or a Municipality.

 

  1. The rate of GST approved by GST Council on services by way of admission to entertainment events or cinematography films in cinema theatres is 28%. However, the entertainment tax rates in respect of exhibition of cinematography films in theaters/cinema halls, currently levied by States are as high as 100% in some of the States.

 

  1. The rate of entertainment tax on cable TV and Direct-To-Home (DTH) levied by States is in the range of 10%-30% in many States. Apart from this, Service tax is also leviable at the rate of 15%. As against this, the rate of GST approved by GSTCouncil on these services is 18%.

 

  1. The rate of GST approved by GST Council on access to circus, theatre, Indian classical dance including folk dance and drama is 18%ad valorem. Further, the GST Council has approved an exemption upto a consideration for admission ofRs 250 per person. These services currently attract entertainment tax levied by the States.

 

  1. Thus, entertainment services shall suffer a lower tax incidence under GST. In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits (ITC) of GST paid in respect of inputs and input services. Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods& inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs.Thus, while GST is a value added tax, entertainment tax, presently levied by the States is like a turnover tax.

 

Click here to know GST rate payable for goods or service

Click here to know GST exemption list of goods and service

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

How to get Export Order?

GST Registration Guidelines

Service Tariff Code for GST


What is legalization of documents by embassy? 
What is LET EXPORT order in export trade? 
What is Line number in IGM 
What does ECGC do on default of payment of any overseas buyer? 
Import of milk, cheese, curd, Kephir and other milk products

 

STALE BILL OF LADING What does it mean?  

Difference between Clean On Board Bill of Lading and Shipped On Board Bill of Lading. 

Can Original Bill of lading be surrendered under DP terms of payment 


CGST Act, Power to summon persons to give evidence and produce documents

 

 

Access to business premises, CGST Act

 

Officers to assist proper officers, CGST Act

 

Determination of tax not paid, CGST Act

 

General provisions relating to determination of tax, CGST Act





Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers