Entertainment is a part of life. Everyone wants their life to be full of excitement and fun. There should be no place for boredom in your life.

In this article, we will discuss the impact of GST rates on the entertainment industry and whether or not it is becoming expensive under GST. The following are the types of entertainment that you can partake in-

  • Movies
  • TV Shows
  • Books
  • Video Games
  • Open Mic Nights
  • Sporting Events
  • Comedy Clubs
  • Circus
  • Theater
  • Carnival
  • Magic Shows
  • Concerts
  • Food Festivals
  • Shopping Festivals
  • Travel
  • Road Trips
  • Amusement Parks
  • Pet Shows
  • Extreme Sports and Recreational Activities

Under the VAT Regime

A list of entertainment tax charged by various states in Old Regime:

State Entertainment Tax
Karnataka 30%
Maharashtra 45%
Punjab, Rajasthan, J&K, Himachal Pradesh 0%
Tamil Nadu 15% (All Tamil Films are Tax Free)
West Bengal 30%
Uttar Pradersh 60%

Impact of GST Rates

Below  shows the final rates that will apply to the entertainment industry after implementation of GST:

Sl. No. Chapter Description of services Rate( Per Cent) Condition
1 2 3 4 5
34 Heading 9996 ( Recreational, cultural and sporting services) (iii) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as Indian Premier League and the like. 14

However, subsequently, 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. Accordingly, department has issued the Notification No. 01/2018- Central Tax (Rate), dated 25th January, 2018 to amend the above Notification No.11/2017-Central Tax (Rate), dated 28th June, 2017 to that effect, extract whereof is reproduced below:

Sl. No. Chapter Description of services Rate ( Per Cent) Condition
1 2 3 4 5
34 Heading 9996 ( Recreational, cultural and sporting services) (iii) Services by way of admission to amusement parks, water parks, joy rides, merry- go rounds, go-carting and ballet. 9

In view of the above, the rate of CGST on the supply of amusement services in amusement park like merry-go rounds and other rides being made to visitors shall be 9% according to Notification No. 11/2017- Central Tax (Rate), dated 28th June, 2017, as amended (vide Notification No. 01/2018- Central Tax (Rate), dated 25th January, 2018), as mentioned above.

Advance Ruling 

Name of the applicant: M/s. Superstar Amusement Pvt. Ltd Advance Ruling No..: GUJ/GAAR/R/17/2019 Dated :28/08/2019

Questions Sought by the applicant:

What rate of tax is applicable when they are giving access right to visitor for individual joy rides in their amusement park?

Submission of Applicant:

1) Applicant is running Amusement park at Kankaria Lake front in the name of “Amusement World” with the support of Ahmedabad Municipal Corporation. They have installed more than 15 joy rides for children as well as for adult. They are running joy rides with two types of schemes, viz.

(i) They are taking fees at the entry point and giving right for unlimited times ride within their premises to visitors, except 2-3 big rides in their premises; and

(ii) The visitor, who wants to enjoy that 2-3 big rides have to pay extra money for per ride enjoyment.

2) Ahmedabad Municipal Corporation, vide their letter dated 22.03.2018, give them instruction that they have to apply two types of GST rate in their Amusement Park, viz. (i) they have to charge GST @18% when they are collecting entry fees ii)They have to collect GST @28% when they are collecting fees to access individual because that is not included in the entry point.

3) They have discussed many times with the authority that Govt. intention is not such, even in the Circular, which was issued in the February 2018, it is clearly mentioned that enjoying camel ride, horse ride, boat ride is consider as joy rides and GST is applicable @ 18% thereon.

Facts and Findings and Ruling :-

1) Applicant is running Amusement park at Kankaria Lake front in the name of “Amusement World” with the support of Ahmedabad Municipal Corporation. They have installed more than 15 joy rides for children as well as for adult. They are running joy rides with two types of schemes, viz. (i) They are taking fees at the entry point and giving right for unlimited times ride within their premises to visitors, except 2-3 big rides in their premises; and (ii) The visitor, who wants to enjoy that 2-3 big rides have to pay extra money for per ride enjoyment.

We find that the applicant is supplying services by way of access to amusement facilities including merry-go rounds and other rides in their amusement park to visitors.

Ruling

The HSC code (Tariff Group/ Heading) for the supply of amusement services in Amusement Park like merry-go rounds and other rides shall be 99969/999691. The rate of tax applicable to the services will be 18% GST.

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