New GST Rates Hit IPL Fans, Cheer Cine-Goers! Movie Tickets Get Cheaper, Live Event Gets Pricier

New GST Rates: The major GST overhaul, announced by the Union Finance Minister Nirmala Sitharaman on Wednesday, will not only impact taxes on daily use items, apparels, and electronics but also the cost of entertainment.

The new GST rates have increased levies on big-ticket sport events like the Indian Premier League (IPL) and other sporting events, but there is relief on low-value movie tickets, reported Economic Times.

New GST rates: IPL Match Tickets To Get Expensive!

As per the ET report, entry tickets for sporting events like IPL matches, etc will not attract 40% GST with input tax credit (ITC). Earlier, these event entry tickets used to attract a 28% GST. The increase in GST is likely to be passed on by the event organisers to customers. The GST hike will significantly impact audiences and cricket fans who attend IPL matches live on a regular basis.

New GST Rates: Movie Tickets To Become Cheaper

There is relief for cinema goers, especially those who prefer low-value tickets. Movie tickets below Rs 100 will attract 5% GST with ITC. Earlier, these tickets used to attract 12% GST. However, there is no change on GST rates on movie tickets above Rs 100. They will continue to attract 18% GST with ITC.

The rejig has come amid demands from cinema industry players to reduce GST on movie tickets. As per ET report, the Multiplex Association of India (MAI) had reached out to the Central Government requesting to reduce GST on movie tickets priced up to Rs 300.
New GST Rates

Other than GST on entertainment services, significant changes have been made in GST rates on daily use items, electronic items, mobile, TV, automobiles, fertilisers, etc. The new GST overhaul will impact nearly all the items that are sold and purchased in the economy and will boost consumption and consumer confidence ahead of the festive season.

"I think it will have a very positive impact on the GDP," Sitharaman said when asked about the impact of rate rationalisation on GDP growth.

Common use food and beverages ranging from butter and ghee to dry nuts, condensed milk, cheese, figs, dates, avocados, citrus fruits, sausages and meat, sugar boiled confectionery, jam and fruit jellies, tender coconut water, namkeen, drinking water packed in 20-litre bottles, fruit pulp or fruit juice, beverages containing milk, ice cream, pastry and biscuits, corn flakes and cereals, and sugar confectionery are likely to see a cut in tax rate to 5 per cent from current 12 per cent or 18 per cent.

Erasers, maps, pencil sharpeners and exercise books will be charged at nil from 5 per cent. Consumer goods such as tooth powder, feeding bottles, tableware, kitchenware, umbrellas, utensils, bicycles, bamboo furniture and combs will see a rate cut from 12 per cent to 5 per cent.

The same on shampoo, talcum powder, toothpaste, toothbrushes, face powder, soap and hair oil has been cut down from 18 per cent to 5 per cent.She said all individual life and health insurance policies will now attract nil tax in a bid to boost coverage.Cement will cost less with the tax rate coming down from 28 per cent to 18 per cent. Petrol, LPG and CNG vehicles of less than 1,200 cc and not more than 4,000 mm length and diesel vehicles of up to 1,500 cc and 4,000 mm length would move to 18 per cent rate from the current 28 per cent.