'Entertainment services tax to be less under GST'

'Entertainment services tax to be less under GST'

'Entertainment services tax to be less under GST'

The Delhi government on Wednesday approved a special, one-day session of the assembly for passing the state Goods and Services Tax (GST) Bill on May 31. Also, they have to compulsorily pay the service tax of 15%. Responding to which Goyal said that at present it was not feasible to reduce the tax slabs under the initial roll out of the GST because of the wide array of goods and services under the tax net.

Thus, while GST is a value added tax, entertainment tax, presently levied by the states is like a turnover tax, the ministry added.

"Even though the GST rate of 12 per cent.appears to be higher than the current effective tax rate of 9-11 per cent (excluding stamp duty), the cost for the home buyer should reduce in case the project developer passes on the benefit of increased input tax credit now available to him on procurements", he said.

The GST Council has fixed 28% GST rate on cinema theatres.

The GST regime will be a game changer for real estate sector and the 12 per cent GST on construction projects meant for sale to buyers will boost the sector, National Real Estate Development Council (NAREDCO) said on Wednesday.

"Entertainment services shall suffer a lower tax incidence under GST. Higher tax rate and non-availability to input tax credit defeats the whole objective of Honourable Prime Minister's vision of "One Nation, One Market, One Law", Dua said. Moreover, a big list of excluded items will result in incomplete input tax offsets, resulting in continued "tax cascading" which an ideal GST (with minimal exemptions) would have eliminated, it added.

Nearly all goods and services have been classified into groups attracting GST rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent respectively.

Shrink wrapped software product (on media) will attract tax rate of 18 per cent, as will Laptops, desktops, peripherals, parts, etc. Monitors and projectors (capable of connecting to ADP) will attract a rate of 28 per cent, while the majority of networking products will attract 18 per cent.

While most OEMs welcomed the GST rates, there was some apprehension on the high rate of taxation on hybrid vehicles, which are typically seen as a pathway to going full electric. As against this, the proposed rate under GST is 12%.

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