GST on tickets to amusement parks lowered to 18% with effect from Jan 25

Tickets to amusement parks, including theme parks, water parks and merry-go-rounds, attract 18 per cent GST with effect from January 25, lower than 28 per cent earlier, the Finance Ministry said on Wednesday.

The ministry hoped that states through authorities, like panchayats and municipalities, would not increase the local taxes on entertainment and amusement and help keep the tax burden low.

"This will ensure that the rate cut in GST is passed on to the children and families," it said.

The ministry said it received requests from several quarters that amusement parks promote social wellness and beget fun and learning for children and their families and, therefore, the rate should be reduced to 18 per cent.

"The GST Council had recommended reduction of GST rate on services by way of admission to amusement parks including theme parks, water parks, joy rides, merry-go-rounds, go- carting and ballet from 28 per cent to 18 per cent," the ministry said in a statement.

It said the exemption threshold for admission tickets to circus, dance and theatrical performances has been doubled to Rs 500.

"From January 25, 2018, the admission tickets to circus, dance, theatrical performances including drama or dance, award functions, pageants, concerts, musical performances, recognised sporting events and planetarium up to Rs 500 per person have been exempted from GST. This measure is expected to promote such cultural and sports events in the country," it said.

The GST Council has also hiked the monthly subscription threshold for deducting GST by resident welfare association (RWA) with turnover of over Rs 2 million with effect from January 25.

RWAs will now be required to pay GST on subscription/ contribution charged from its members if such payment is more than Rs 7,500 per month per member, as against Rs 5,000 per month per member earlier.

Further, if the aggregate turnover of such RWA is up to Rs 2 million in a financial year, then such supplies will be exempted from GST.

"Under GST, the tax burden on RWAs will be lower for the reason that they would now be entitled to Input Tax Credit (ITC) in respect of taxes paid by them on capital goods (generators, water pumps, lawn furniture), goods (taps, pipes, other sanitary/hardware fillings) and input services such as repair and maintenance services," the ministry said.

ITC of central excise and VAT paid on goods and capital goods was not available in the pre-GST period and these were a cost to RWA, it added.