Taxation on entertainment, cable and DTH services shall come down under the Goods and Services Tax regime as the entertainment tax levied by states has been subsumed in the GST, the Indian government said today. "As against this, the proposed GST rate for cement is 28 per cent", the ministry said here in a statement.
The GST Council has decided on product-wise tax rates for GST, which would be implemented nationwide from July 1. Circus, theatre and organising cultural & folk programs will have a GST rate of 18%.
He further informed that over a period of time, the GST council is looking towards reducing the number of tax slabs.
The move will bring some relief to cable and DTH companies as well as consumers as it will lead to tax savings for them, thus lowering the prices of these services.
Presently, such service providers are not eligible to avail of input credits in respect of Value Added Taxes ( VAT) paid on domestically-procured capital goods and inputs or of Special Additional Duty ( SAD) paid on imported capital goods and inputs. Thus, the present total tax incidence on smart phones works out to more than 13.5%.
Presently, such service providers are not eligible to avail of input credits in respect of Value-Added Tax paid on domestically procured capital goods and inputs or of special additional duty (SAD) paid on imported capital goods and inputs.
Highlighting the positives of the new tax policy Goyal said that the GST is "Self-Regulatory" and it is not possible for someone to evade taxes under the new tax regime. At these rates, the present total tax incidence works out to more than 13%.
The present total tax incidence on them including CST, octroi, entry tax, etc works out to more than 13%.
"Several such workshops are being planned in Delhi, Uttar Pradesh and central India over the next few weeks to enable our SME supplier partners achieve sustainable growth in the GST era", the company said in a statement.