GST implementation: Entertainment Duty Department will cease to exist

Kaumudi Kashikar Gurjar
Saturday, 17 June 2017

Principal Secretary of Revenue Department Manu Kumar Srivastava told Sakal Times that Entertainment Duty will be subsumed by GST. 

Pune: When it is argued that Goods and Services Tax (GST) will play a positive and negative impact on the entertainment industry, it is obvious that there will be a major change in terms of direct revenue collected by State government.

The Entertainment Duty Department, which is an integral part of State revenue machinery will cease to exist once GST comes into effect. The State government, which collects Entertainment Duty of 40 to 45 per cent, had set a target of Rs 800 crore for last fiscal through this cess.

However, the duty will now be collected through GST from July 1.

However, the revenue bosses in the State said this does not mean that the State government will be losing out on the money. Principal Secretary of Revenue Department Manu Kumar Srivastava told Sakal Times that Entertainment Duty will be subsumed by GST. 

He added that it does not mean a loss of revenue to the State. “There are two components in GST and money will come to the State under the different head,” he said. Srivastava said added that the staff in the department will be accommodated in other departments.

 

End user benefited
†Pune district collected Rs 156 crore of Entertainment Tax in the recently ended fiscal.
†Direct to home connection and entertainment tax charged on movie tickets form a larger component in the total tax collected, followed by tax on tickets for events, IPL matches, video parlours, water parks etc.
†Entertainment Duty forms a large component of the total revenue collection.
†In states like Maharashtra and Uttar Pradesh, Entertainment Tax is as high as 40 and 60 per cent respectively.
†Experts say in the states where this tax is higher, it will prove beneficial for the end consumers as GST rate will be 28 per cent for movie tickets and 18 per cent for food and drinks sold at movie halls.

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