The much-awaited Goods and Services Tax which will come into force on July 1st has been revised by the Union Government, a key decision taken after the 16th GST Council meet concluded on Sunday. Out of the 133 items on which the representations were received from the industries and the State governments, the GST council reduced the tax level for 66 items.
Especially, film industry has been vocal about the initial proposal of 28pc tax of the GST. While Bollywood was convinced with it, the regional film industries have been raising voice with the high-tax structure levied on the film tickets stating that it would be a death knell to regional and small-films.
Kamal Haasan has openly opposed and stated that he would quit films if it’s not revised. Telangana government under KTR’s leadership has met Finance Minister Arun Jaitley and explained the situation and asked for less tax level for films. Finally, FM Arjun Jaitley has considered the woes of the film industry and announced two-bracket tax structure for cinema tickets. According to the latest revision, the cinema tickets below Rs 100 will be charged a GST tax of 18 per cent while cinema tickets above Rs 100 will be charged a GST tax of 28 per cent. With this, the cinema tickets of single screens below Rs 100 will be charged at Rs 18 whereas the cinema tickets of multiplexes (above Rs 100) would have a tax at 28 per cent.
Presently, entertainment tax is levied by individual states. The states levy a different rate, ranging from 28-110pc, and the weighted average for the entire country is about 30pc. However, several state governments give an exemption to cinema of the particular language of that state. Under GST, there will now be no centralised exemption. Talking about it, FM Arjun Jaitley said, “If states want, through the DBT (Direct Benifit Transfer), the state can refund the GST of regional cinema.”
The next meeting for the GST Council will be on June 18th.
Below are few other revised Tax Items:
Cashew revised from 12pc to 5pc
Packaged food, including some fruits and vegetables, pickles, toppings, instant food, sauces revised from 18pc to 12pc
Agarbatti revised from 12pc to 5pc
Dental wax revised from 28pc to 8pc
Insulin revised from 12pc to 5pc
Plastic beads revised from 28pc to 18pc
Plastic turpolin revised from 28pc to 18pc
School bags revised from 28pc to 18pc
Exercise books revised from 18pc to 12pc
Coloring books revised from 12pc to nil
Pre-cast concrete pipes revised from 28pc to 18pc
Cutlery revised from 18pc to 12pc
Tractor components revised from 28pc to 18pc
Computer printers revised from 28pc to 18pc
For workers in industries like textile, diamond processing etc, where the workers take the work home, 18pc tax that is now being charged will be fixed at 5pc because the GST for these sectors have gone down as well.
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