GST: Entertainment, cable, DTH services to be taxed lower, watching films to become cheaper

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New Delhi: Tax on entertainment, cable television and DTH services shall come down under the Goods and Services Tax program as the entertainment tax levied by states has actually been subsumed in the GST, the government stated on Tuesday.The Finance Ministry in a declaration said services by way of admission to entertainment occasions or cinematography movies in cinema theatres will attract 28 percent GST with effect from 1 July. Currently, states enforce home entertainment tax of as much as One Hundred Percent in respect of exhibition of cinematography films in theatres/cinema halls.Under GST, the home entertainment tax has actually

been subsumed, and for this reason only the taxes levied by a panchayat or municipality on home entertainments and amusements will continue.”Therefore, home entertainment services will suffer a lower tax occurrence under GST. In addition to the advantage of lower headline rates of GST, the company will be eligible for full input tax credits(ITC)of GST paid in regard of inputs and input services,”the ministry said.The GST Council has finalised 18 percent tax rate on cable and Direct-To-Home

(DTH )services. Presently, these services bring in an entertainment tax in states in the variety of 10-30 per cent over and above the service tax levy of 15 percent.With regard to circus, theatre, Indian classical dance including folk dance and drama, the GST rate is 18 percent advertisement valorem.Further, the GST Council has approved an exemption up to a consideration for admission of Rs 250 per person. These services presently bring in home entertainment tax imposed by the states, the statement stated.”Presently, such service providers are not eligible to avail of input credits in regard of VAT paid on locally procured capital items and inputs or of Unique Additional Responsibility(SAD)paid on imported capital goods and inputs,”the statement added.Thus, while GST is a value added tax, home entertainment tax, presently levied by the states resembles a turnover tax, it added.The government has actually approximated that the occurrence of taxes on smartphones, medical gadgets and cement will come down post GST rollout from July 1. Last week, the GST Council had actually settled the fitment of over 1,200 products and 500 services in the 4 tier tax bracket of 5,

12, 18, and 28 percent under the GST regime.The GST will subsume 16 different taxes, including excise, BARREL, service tax and entertainment tax, and will change India into an unified market for seamless movement of goods.Published Date: May 24, 2017 07:06 am|Updated Date: May 24, 2017 07:06 am



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