Once the GST is implemented, the rate of tax levied on TV Cable, DTH and watching movie in theatres will come down. In a statement today, the central government clarified that the state governments used to levy entertainment tax on such activities and the same has been included in GST, not leaving any room for an additional tax. This will decrease the rate of tax on entertainment and all have a positive impact on general public.
Earlier, the finance ministry had announced that all the entertainment activities, which involves use of premises, including movie theatres will be kept Inder 28% of GST slab. Currently, states have a tax rate of upto 100% on movie theatres and cinema halls.
The ministry also stated that the movie theatres will face lesser percent of taxes under GST. While being in 28% tax net, theatre owners can claim for full Income Tax Credits for items purchased. The other section of entertainment, TV Cable and DTH have been kept under 18% GST slab. Circus, theatre and organising cultural & folk programs will have a GST rate of 18%.
Currently, these services pay a tax ranging from 10-30 percent. Also, they have to compulsorily pay the service tax of 15%.