Entertainment, cable, DTH to attract lower taxes under GST

The Union Finance Ministry on 23 May 2017 announced that the taxation on entertainment, cable and DTH services will come down under the Goods and Services Tax (GST) regime.

Under GST, the Entertainment Tax has been subsumed and hence only the taxes levied by a Panchayat or Municipality on entertainments and amusements will continue.

• The Entertainment Services like events or cinematography films in cinema theatres will attract 28 per cent GST with effect from 1 July 2017.

• Cable TV and Direct-To-Home (DTH) services will attract 18 per cent GST.

• With regard to circus, theatre, Indian classical dance including folk dance and drama, the GST rate is 18 per cent.

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

Comment
Currently, States impose entertainment tax of up to 100 per cent in respect of exhibition of cinematography films in theatres and cinema halls. Entertainment tax is like a turnover tax.

Moreover, for Cable TV and Direct-To-Home (DTH) services, States are currently imposing a tax of 10-30 per cent over and above the service tax levy of 15 per cent.

However, with the implementation of GST, entertainment services shall suffer a lower tax incidence under GST.