When we talk about GST on Media and Entertainment, the first question that comes into our mind is what exactly media and entertainment is and what it includes? Let us understand the meaning of media and entertainment.
Media and Entertainment industry consist of film, television, radio and print. Different types of activities in media and entertainment industry are movies or films, film distribution, food and beverages at movie hall, services rendered by artist and other technicians, sponsorship and brand promotion, advertisement and amusement park.
As per The Economics Times India’s media and entertainment industry is expected to grow with rate of 8.8% and it makes the India’s media and entertainment industry FIFTH largest industry in the WORLD after U.S., Japan, China and U.K.
Film is nothing but a story, play etc. shown in moving pictures at any the cinema or television. It is a series of still photographs on film projected onto a screen using light in rapid succession.
Film Distribution, also known as film exhibition or film distribution and exhibition, is the process of making a movie available for viewing by an audience.
Now, we had completely understood the meaning of media and entertainment industry and also some components of such industry, the next question arises whether there is GST implication on film distribution and other media and entertainment activities and the answer is yes, but the answer of other questions such as at what rate GST is implemented and what are the other procedures etc.? We are going to discuss all these in detail in this article.
Place of Supply
Place of supply of Goods: In case of foods and food products in a movie hall, the place of supply is movie hall itself.
Place of supply of Service: Place of supply of service is location of service recipient. But when the service is provided to an unregistered dealer and their location is NOT available, the location of service provider will be the place of provision of service.
OIDAR (Online Information Database Access and Retrieval services) is a term used for Online supply of Digital content like music, movies, television shows etc.
Both service provider and recipient is Located in India: In this GST would be charged at the rate of 18% under Forward Charge Mechanism.
Supplier is outside India and recipient is in India: In this case GST rate would be 18% but the manner of levy of GST would depend whether the recipient is registered under GST or NOT.
If recipient is registered under GST then GST would be charged under Reverse Charge mechanism. However, if service recipient is unregistered then service provider needs to register under GST in India and GST would be charged and FCM.
Exhibition of Movies:
a) Sale of Movies Tickets: When sale price of ticket is Rs. 100 or less, GST applicable on such ticket is 18%. But when the sale price per ticket exceeds Rs. 100 then GST on such tickets is 28%.
b) Television: GST on broadcasting services is 18%.
c) In case of taxes on entertainment and amusement, authority is given to local bodies to levy and collect such taxes.
Food and Beverages at Movie Hall: Supply of Food and Beverages at Movie Hall is to be treated as restaurant service; GST on such supply is to be charged at the rate of 18% in case of Air Conditioned halls and at the rate of 12% in case of Non-Air Conditioned hall.
Film Distribution: Transfer of copyright for exhibition in theatre, television or transfer of intellectual property right in respect of goods is charged at the rate of 12% under GST. But transfer of INTELLECTUAL PROPERTY right in respect of information technology software is charged at the rate of 18%
Service rendered by Artist and Other Technicians: Services rendered by Artist and technicians is to be charged at the rate of 18%, but Services rendered by Artist is charged under FCM basis and services provided by Technicians such as author, music composer, photographer, artist is charged under RCM basis.
Advertisement: Advertisement, other than in form print media, is charged at the rate of 18%. Advertisement in form of Print Media is charged at the rate of 5%. However, ITC is available on taxes paid on advertisement.
Amusement Park: In case of amusement park GST is levied at 18%.
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