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GST impact: Entertainment, cable, DTH to enjoy lower taxes from July 1

Currently, states impose entertainment tax of up to 100 per cent

Press Trust of India  |  New Delhi 

Illustration: Binay Sinha
Under GST, the entertainment tax has been subsumed. Illustration: Binay Sinha

Taxation on entertainment,cable and services shall come down under the Goods and Services regime as the 'entertainment tax' levied by states has been subsumed in the GST, the government said today.

The in a statement said services by way of admission to entertainment events or cinematography films in cinema theatres will attract 28 per cent with effect from July 1.


Currently, states impose entertainment of up to 100 per cent in respect of exhibition of cinematography films in theatres/cinema halls.

Under GST, the entertainment has been subsumed, and hence only the taxeslevied by a panchayat or municipalityon entertainments and amusements will continue.

"Thus, entertainment services shall suffer a lower incidence under In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input credits (ITC) of paid in respect of inputs and input services," the ministry said.

The Council has finalised 18 per cent rate oncable TV and Direct-To-Home (DTH) services.

Currently, these services attract an entertainment in states in the range of 10-30 per cent over and above the service levy of 15 per cent.

With regard tocircus, theatre, Indian classical dance including folk dance and drama, the rateis 18 per centad valorem.

Further, the Council has approved an exemption up to a consideration for admission of Rs 250 per person.

These services currently attract entertainment levied by the states, the statement said.

"Presently, such service providers are not eligible to avail of input credits in respect of VAT paid on domestically procured capital goods and inputs or of Special Additional Duty (SAD) paid on imported capital goods and inputs," the statement added.

Thus, while is a value added tax, entertainment tax, presently levied by the states is like a turnover tax, it added.

The government has estimated that the incidenceof taxes on smartphones, medicaldevices and cement will come down post rollout from July 1.

Last week, the Council had finalised the fitment ofover 1,200 goods and 500 services in the four tier bracketof 5, 12, 18, and 28 per cent under the regime.

The will subsume 16 different taxes, including excise, VAT, service and entertainment tax, and willtransform India into an unified market for seamless movementof goods.

First Published: Tue, May 23 2017. 12:49 IST
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