Media plays the vital role in circulating the information in today’s world. Media updates on GST help the people to understand the concept bitterly and also enhance the awareness program among the people of the country. GST is the important step taken by the government to make the nation united in term of tax and price of the good and this is the debatable topic in media from the beginning although this all end on the positive note of media support to GST.
Entertainment tax subsumed under GST and fungibility of input tax credits:
Before GST regime, the tickets of films used to attract Entertainment Tax based on the State laws. No set off was provided for Entertainment Tax against Service Tax or VAT paid by the exhibitors on procurements and so the levies were cumulative and the ultimate customer used to bear the burden of taxes. With the introduction of GST, the entertainment tax levied by the State Government is subsumed, which may reduce the final cost of movie tickets to consumers in states where Entertainment tax was higher than GST rate.
Power provided to Municipality to Tax on entertainment and amusement:
Under GST regime, an authority is given to local bodies to levy and collect taxes on entertainment and amusement. This appears to be a backdoor entry of entertainment tax and if levied by the local bodies, would increase the cost to consumers.For instance, Entertainment tax is levied in Tamil Nadu at the rate of 8% on Tamil Films and 20% on other films which results in significant increase in taxes on movie tickets. Also, levy of Entertainment tax leads to cascading effect of taxes since Entertainment tax amount would be included in the base value for levy of GST.