New GST Rates 2018: GST on Amusement Park Tickets Reduced to 18% From 28%
With the recent move, the Finance Ministry hopes that states through authorities, like panchayats and municipalities, would not increase the local taxes on entertainment and amusement and help keep the tax burden low.
New Delhi, February 7: The Goods and Service Tax (GST) on amusement parks, theme parks, water parks and merry-go-rounds has been reduced from 28% to 18%. The Finance Ministry in its statement informed that the new GST rates have come into effect from January 25. With the recent move, the the government hopes that states through authorities, like panchayats and municipalities, would not increase the local taxes on entertainment and amusement and help keep the tax burden low. "This will ensure that the rate cut in GST is passed on to the children and families", the Finance Ministry said.
In its meeting held on 18th January 2018, the GST Council had recommended a reduction of GST rate on these services. As per reports by the Finance Ministry, requests were received from several quarters that amusement parks promote social wellness and beget fun and learning for children and their families in a real active entertainment and therefore, the rate may be reduced to 18%.
According to a government press release, the notifications giving effect to these recommendations of the Council have been issued on 25th January, 2018. Accordingly, admission to amusement parks including theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet is now taxable at the lower rate of 18%.
The Finance Ministry also said that the exemption threshold for admission tickets to circus, dance and theatrical performances has been doubled to Rs 500. “The threshold price limit of Admission Ticket for circus, dance, theatrical performances including drama or dance, award functions, pageants, concerts, musical performances, and recognized sporting events may be increased from Rs 250 per person to Rs 500 per person”, the Finance Ministry said in its statement. The government’s move is expected to promote such cultural and sports events in the country.
(The above story first appeared on LatestLY on Feb 07, 2018 05:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).