GST ON ENTERTAINMENT SECTOR

MEANING AND DEFINITION OF SUPPLY

Under Goods and Services Tax, supply means the point of taxation or taxable event. The term supply includes the following attributes[1]:

1. You should make a supply that either involves goods or services.
2. If you supply anything that is not categorized as goods or services, it is not considered a supply
3. In case you undertake any Barters or Exchanges, then GST is applicable even on such transactions.
4. The term “Supply” also includes licences, leases, rentals with or without transfer of right to use. Therefore, GST is levied on such transactions as well.
5. You should supply goods or services for a consideration. Consideration can be in the form of money or otherwise.
6.  In case, a third party pays money in lieu of or on behalf of the recipient, the same shall be considered a part of supply.
7.  Under GST, if you make any deposit as a recipient is not regarded as consideration. Unless the same is specifically applied to by the supplier.
8. You should make a supply that is in the course of or for the furtherance of business.
9. If you make a supply for personal consumption or in personal capacity, such supplies do not attract GST.
10. You are eligible to make a supply only if you are a taxable person.
11. If you are a non-taxable person and you make a supply to another non-taxable person, then such a supply is not leviable to GST.
12. Under GST, you can make a supply to a non-taxable person also.
13. A taxable person is the one who is registered or who is liable to be registered under the law

Recreational cultural and sporting event

Major Entertainment activities are classified under GST in the heading of 9996 that is RECREATIONAL CULTURAL AND SPORTING EVENT[1]

v Services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama

v Services by an artist by way of a performance in folk or classical art forms of a) Music, b) dance, c) theatre

v Services by way of admission exhibition of cinematograph films

v 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

v Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo

v Services provided by a race club by way of totalisator or a license to bookmaker in such club.

v Gambling

v Recreational, cultural and sporting services other than above

EXEMPTED SERVICE UNDER GST

RATES OF TAXES UNDER GST

HSN Code	Goods/Service Description	CGST	SGST	IGST
9996	(i) Services by way of admission or access to circus, Indian classical dance including folk dance, theatrical performance, drama.	9	9	18
9996	(ii) Services by way of admission exhibition of cinematograph films where price of admission ticket is one hundred rupees or less.	6	6	12
9996	(iia) Services by way of admission exhibition of cinematograph films where price of admission ticket is one hundred rupees or less.	9	9	18
9996	(iii) Services by way of admission to amusement parks including theme parks, water parks, joy rides, merry-go rounds, go-carting and ballet.	9	9	18
9996	(iiia) Services by way of admission to entertainment events or access to amusement facilities including casinos, race club, any sporting event such as Indian Premier League and the like	14	14	28
9996	(iv) Services provided by a race club by way of totalisator or a license to bookmaker in such club.	14	14	28
9996	(v) Gambling.	14	14	28
9996	(vi) Other Recreational, cultural and sporting services	9	9	18

OTHER TAXABLE SUPPLY RELATED TO ENTERTAINMENT

Chapter/ Heading	Chapter Heading	Description of Service	TAX RATE
99961	Audiovisual and related services		18
	999611	Sound Recording Services
	999612	Motion pictures, videotape, television and radio programme production services
	999613	Audiovisual Postproduction services
	999614	Motion pictures, videotape, television and radio programme ditribution services
	999615	Motion picture projection services
99962	Performing Arts and Other Live entertainment event presentation and promotion services		18
	999621	Performing arts event promotion and organization services
	999622	Performing arts event production and presentation services
	999623	Performing arts facility operation services
	999629	Other performing arts and live entertainment services n.e.c
99963	Services of performing and other artists		18
	999631	Services of performing artists including actors, readers, musicians, singers, dancers, TV personalities, independent models etc
	999632	Services of authors, composers, sculptors and other artists, except performing artists
	999633	Original works of authors, composers and other artists except performing artists, painters and sculptors
99964	Museum and preservation services		0
	999641	Museum and preservation services of historical sites and buildings
	999642	Botanical, zoological and nature reserve services
99965	Sports and recreational sports services		18
	999651	Sports and recreational sports event promotion and organization services
	999652	Sports and recreational sports facility operation services
	999659	Other sports and recreational sports services n.e.c.
99966	Services of athletes and related support services		18
	999661	Services of athletes
	999662	Support services related to sports and recreation
99969	Other amusement and recreational services		18
	999691	Amusement park and similar attraction services
	999692	Gambling and betting services including similar online services
	999693	Coin-operated amusement machine services
	999694	Lottery services
	999699	Other recreation and amusement services n.e.c.
9984	Telecommunications, broadcasting and information supply services		5
	998461	Radio broadcast originals
	998462	Television broadcast originals
	998463	Radio channel programmes
	998464	Television channel programmes
	998465	Broadcasting services
	998466	Home programme distribution services
9973	Leasing or rental services without operator		12
9984	On-line video content		5

TAXATION UNDER GST REGIME

Time of Supply for Services

Time of supply of services is the earliest of the following:

• Date of issue of invoice
• Date of receipt of advance/payment.
• Date of provision of services (if invoice is not issued within prescribed period)

Time of Supply under Reverse Charge

In case of reverse charge, the time of supply for service receiver is the earliest of the following:

•      Date of payment (For services only)
•      30 days from date of issue of invoice for goods (60 days for services)

Place of Supply

Place of Supply of Goods

• In case of sale of food & food products in a movie hall, the place of supply is the movie hall itself.

Place of Supply for Services

• Place of supply of services is the location of the service recipient.
• In cases where the services are provided to an unregistered dealer and their location is not available, the location of the service provider will be the place of provision of service.

Place of Supply at Movie Halls

• Place of supply is place where the service are actually performed. i.e., movie hall itself.

Place of Supply in Events

Nature of Supply	Place of Supply
Admission to an event or amusement park or any other place. Services ancillary to above	Place where the event is held or place where the amusement park is located
Entertainment events and services ancillary to the above	Supply to: Registered person – Location of the registered person Unregistered person – Location of the event.

Value of Supply of Goods and/or Services

The amount collected by the seller / service provider from the buyer or service recipient respectively is the value of supply.

GST on Online supplies of Digital Content (Music, Movies, Television Shows, etc.)

Online supplies of Digital Content (Music, Movies, Television Shows, etc.) are known as OIDAR i.e. Online Information Database Access and Retrieval services.

1. Case 1: Both Service Supplier and Service Recipient are in India

GST @ 18% i.e. the Service Supplier should be registered in India and shall collect GST@ 18% from the Service Recipient.

2. Case 2: Service Supplier is outside India and Service Recipient is in India

Place of supply would be India The manner of levy of GST on such transactions would depend on whether the Service Recipient is a Business or is a Consumer i.e. Non-Business.

I. Service Recipient is a Business entity registered under GST

The service recipient is liable to tax under the Reverse Charge Mechanism

II. Service Recipient is not registered under GST

Service provider would also be required to get registered in India under the GST Law, collect GST from the service recipient and then deposit GST with the Govt.

                                                                                                                                    to be continued...

Its all related to Entertainment sector levy and collection of tax in the GST regime. In the next post we are going to see about Tamilnadu Local Authority Entertainment Tax Act 2017

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If you have doubts or clarification required on entertainment tax implication in your business, please reach us at 87544 72172 / paassociatesmail@gmail.com / www.paassociate.in (Free consultation) / Auditor from medavakkam