Impact of GST on Entertainment services

By / / GST

1. GST on Entertainment services

  • Entertainment is a vide area and encompasses various services from admission to a cinema hall to visiting a museum or a national park.
  • GST is applicable on all the entertainment services subject to a few exemptions discussed below.

2. Applicability of GST on charges collected for admission to movie halls

  • Yes, GST is applicable on the charges collected to attend the screening of a movie.
  • Therefore, you can see an extra GST component on the movie tickets you purchase, since the same is not exempted from GST

3. GST on performance arts

  • Performance of artists in folk or classical art forms is exempt (Refer FAQ 5)
  • Performance of artists in any form of modern art is taxable under GST.

4. What is the scope of the term modern arts?

  • We use the term modern arts to denote all performance art forms other than folk or classical art forms, even though the term modern art is not mentioned anywhere in the GST law
  • By modern art, we mean magic shows, mimicry, western music or dance, modern theatres, performance of actors in films or television serials etc.

5. Scope of performance in folk or classical art forms

  • Performance of artists in folk or classical art forms of music, dance and theatre are not subject to levy of GST, provided the consideration charged for such performance should not exceed Rs. 1,50,000.
  • However, this exemption shall not apply if the services are provided by the same artist as a brand ambassador

6. Who is a brand ambassador?

  • A brand ambassador means a person who is involved in promoting or marketing a brand of goods, services, property or actionable claim, event or endorsement of name, including a trade name, logo or house mark of any person
  • Services provided by any person as a brand ambassador is taxable.

7. If an artist performing folk dance charges Rs. 1,60,000 for her performance? How much of the consideration is taxable?

  • Performance of artists in folk or classical art forms of music, dance and theatre are not subject to levy of GST, provided the consideration charged for such performance should not exceed Rs. 1,50,000.
  • In the given case, since the consideration exceeds Rs. 1,50,000. The entire consideration of Rs. 1,60,000 is taxable.

8. Is GST applicable on Zoo tickets?

  • Services by way of admission to a museum, zoo, national park, wild life sanctuary or tiger reserve are exempted from the levy of GST.

9. Will entry to see monuments attract any tax?

  • GST will not be levied on admission to a Protected monument
  • Ancient monuments which are declared to be of national importance by or under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 are called Protected Monuments.
  • you fill not find an extra GST component in the ticket you buy to see Taj Mahal.

10. Is GST applicable on entry tickets to amusement and theme parks?

  • Yes, services by way of admission to amusement parks including theme parks, water parks, joy rides etc, are not exempted from GST and are hence taxable.

11. GST on admission to specified events/places

  • Services by way of admission to the following events/ places will not attract any tax provided the consideration charged per person per ticket is not more than Rs. 500
    • circus, dance, or theatrical performance including drama or ballet
    • award function, concert, pageant, musical performance or any sporting event.
    • Recognized sporting event
    • Planetarium

12. What is the meaning of the term “recognised sporting event”?

  • The term recognised sporting event refers to those events
    • Organised by a recognised sports body where the participating team or individual represents any district, state, zone or country.(or)
    • Organised
      • By Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat
      • By the Central   Civil   Services Cultural and Sports Board as a part of national games, by the Indian Olympic Association
      • Under the Panchayat Yuva Kreeda Aur Khel Abhiyaan Scheme.

13. What is the meaning of the term “Recognised Sports body”?

The term “recognised sports body” includes

  • The Indian Olympic Association
  • Sports Authority of India
  • A national sports federation recognised by the Ministry of Sports and Youth Affairs of the Central Government, and its affiliate federations
  • National sports promotion organisations recognised by the Ministry of Sports and Youth Affairs of the Central Government
  • The International Olympic Association or a federation recognised by the International Olympic Association or
  • A federation or a body which regulates a sport at international level and its affiliated federations or bodies regulating a sport in India;

14. Do IPL tickets attract GST?

  • Yes, IPL tickets will attract GST if the price of the ticket is more than Rs. 500

15. Will services by way of admission to horse races attract GST?

  • Yes, GST will be levied on the entry tickets since the same is not expressly exempted under GST law.

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