Cable, DTH services to become cheaper under GST regime

Tribune News Service

New Delhi, May 23

Allaying fears of rise in prices of some services, the government today said there be will lower tax incidence on entertainment services under the GST regime.

Taxes on entertainment, including cinema, cable and DTH services, will come down under the GST regime as the entertainment tax levied by states has been subsumed in the GST.

The Finance Ministry said services by way of admission to entertainment events or cinematography films in cinema theatres will attract 28% GST with effect from July 1.

Under the GST, the entertainment tax has been subsumed, and hence only the taxes levied by a panchayat or municipality on entertainments and amusements will continue. “In addition to the benefit of lower headline rates of GST, the service providers shall be eligible for full input tax credits of GST paid in respect of inputs and input services,” it said.

Similarly, the government said the GST Council has finalised 18% tax rate on cable TV and direct-to-home (DTH) services.