Read the effects of GST in media and entertainment industry

The media and entertainment industry of India has completely witnessed the blistering growth in past few years and at present India is globally 5th largest media & entertainment market too. The box office revenue was also expected for growing around 10,975 CR INR in the year 2016 and by the 2021 year it will be around 18047 CR INR at healthy CAGR of around 10.4 percent that indicates actually that entertainment plays important role in the day to day lives. One can read the effects of GST in media and entertainment industry online and can know its impacts as whether it is a welcoming step or not.

The effects of GST in media and entertainment industry

Some of the items that fall under the 18 per rate are as, TV & DTH service, theatre, circus and the Indian classical dance which includes drama and folk dance. The other services  under  entertainment category like events or the cinematography films in cinema theatres also are liable for 18 percent GST. Furthermore it includes the movie tickets, casinos, movie festivals, racing and other sport events with the ticket prices that are below rupees 100. The items which fall under the 28 percent tax rate states the services by way of admission for entertainment events or the cinematography films in cinema theatres, such also includes the movie tickets, casinos, movie festivals, racing and other sport events with the ticket prices that are above rupees 100.

Additional taxes by dual taxation under the GST

While entertainment industry is feeling that such rates are too high, it is more concerned that GST council can allow the individual states for levying additional local tax called as LBT. Such can make the movies as the only product or service with the dual taxation. Levying it can be discretion of all states and the tax rates of LBT will also vary across country. You can know the effects of GST in media and entertainment industry online. As per the different media industry executives and the tax experts some of the states includes Rajasthan, Gujarat, Madhya Pradesh also said that this will levy the LBT on DTH service, cable and cinema.

How did industry experts found it?

The multiplex association also emphasized that with possible addition of around 10 to 25 per cent of local body entertainment taxes, the cinema can also end up on paying more than around 28 per cent of GST. Such a dual taxation at the prohibitive rates will not lead to the substantial increment in the ticket price for cinema goers only but might sound death knell for film industry that is already faring badly due to onslaught piracy continuously. As the local body tax rate will vary from state to state, the states will benefit from implementation are ones which are with high entertainment taxes. On the other hand, GST can have the adverse effects in media and entertainment industry in states like Gujarat, Punjab, Chhattisgarh, and Andhra Pradesh where rates were lower before too.

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