GST: Watching movies, theatre, cable TV to be cheaper
GST on watching movies is fixed at 28%, which is lower than entertainment tax that is as high as 100% in some states.business Updated: May 23, 2017 15:07 IST
Watching movies, theatre or cable TV is set to become cheaper under the Goods and Services Tax (GST) regime scheduled from July 2017.
The finance ministry on Tuesday said the taxes on entertainments and amusements that are as high as 100% have been merged under GST.
Panchayats and municipalities can still levy a tax on entertainment over and above the GST.
“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%,” the ministry said.
At present, the entertainment tax rates charged to movie-goers are as high as 100% in some of the States.
In case of cable TV and Direct-To-Home (DTH), the GST rate has been pegged at 18% as against the entertainment tax ranging between 10% and 30% levied by states plus the 15% service tax charged by the Centre.
The GST rate for circus, theatre, Indian classical dance including folk dance and drama is 18% on value or ad valorem.
The GST Council has approved an exemption upto a consideration for admission of Rs 250 per person. These services currently attract entertainment tax levied by the States.
“Thus, entertainment services shall suffer a lower tax incidence under GST,” the ministry said.
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.