GST UPDATE

Desk of CA. Praveen Sharma Series- 503 GST on Event Cinema Halls and Entertainment Services

The Goods and Services Tax (GST) on cinema halls and entertainment services, including those hosting events, is determined under the GST law in India, specifically under the GST rate schedule for services. The GST Council, which is the governing body responsible for making recommendations to the Union and State Governments on issues related to GST, periodically revises the GST rates for various services, including those provided by cinema halls.

As of the last update, the GST on cinema tickets is structured based on the ticket price: Section 7 of the CGST Act, 2017 defines the supply of goods and services. Cinema tickets fall under the category of supply of services.

1. Tickets priced up to Rs. 100: A lower GST rate is applicable for cinema tickets that are priced up to Rs. 100. 

2. Tickets priced above Rs. 100: A higher GST rate is applicable for tickets that are priced above Rs. 100.

The specific rates are as follows:

- Tickets up to Rs. 100: GST is charged at 12%.

- Tickets above Rs. 100: GST is charged at 18%.

These rates are outlined under the GST rate schedule for services under Chapter 9996, which pertains to "Recreational, cultural and sporting services" including cinema services. It's important to note that these rates are subject to change based on decisions made by the GST Council.

For event cinema halls, the applicable GST rate would depend on the ticket pricing as mentioned above. It's also important for businesses operating in this sector to comply with the GST registration requirements, issue GST-compliant invoices, and file GST returns timely to avoid penalties and ensure compliance with the GST laws in India.

Amusement Parks and Entertainment Events: Services by way of admission to entertainment events or access to amusement facilities (such as theme parks, water parks, etc.) are covered under Chapter 9996 of the Service Accounting Codes (SAC). A standard GST rate of 18% is applicable to these services.

Cultural, Artistic, Sporting, Scientific, or Educational Events: Depending on the nature of the event and the organizing body, certain exemptions may apply. For instance, services provided by a non-profit entity for a cultural, artistic, or sporting event may be exempt under specific conditions outlined in the GST notifications.

Generally, the GST rate for services not exempted is 18%.

Online Gaming, Betting, and Gambling: These services attract a higher GST rate of 28%, reflecting the government's policy stance on demerit goods and services.

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CA. Praveen Sharma

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