Visits to amusement parks, sporting events like IPL, dance and music performances will now become cheaper.
The government has slashed the Goods and Services Tax (GST) on the tickets to amusement parks, including water parks, theme parks and merry-go-rounds to 18% from 28% earlier, the Union finance ministry said. The reduction comes into effect from 25 January, 2018.
Tickets to the sporting events, planetariums, theatrical, dance and music performances up to Rs 500 have also been exempt from the GST. Earlier, tickets up to Rs 250 were tax exempt. The GST Council had recommended a reduction in the rates.
The Council has also hiked the threshold for deducting GST on the Resident Welfare Associations (RWAs) with an annual turnover of over Rs 20 lakh. The RWAs will now have to pay GST on the subscription charged from members on the payment exceeding Rs 7,500 per month per member from Rs 5,000 per month earlier. However, if the total turnover is up to Rs 20 lakh, the RWAs will be exempt from the GST. This will also be effective from January 25.
According to the finance ministry, "The tax burden on the RWAs will be lower considering that they will be entitled to input tax credit in respect to the taxes paid by them on capital goods such as generators, water pumps, lawn furniture as well as repair and maintenance services."
