Example:
- 11
An
entertainment event of Jadu circus is organized and local authorities levy
entertainment tax of Rs. 1 on the ticket value of Rs. 20 for circus. Whether entertainment tax levied by
local authority will form part of value of service for the purpose of GST?
Ans
. Section 15 of CGST act specifies that any taxes, duties, cesses, fees and
charges levied under any law for the time being in force other than CGST Act,
the SGST Act, the UGST Act and the Goods and Services Tax (Compensation to
States) Act, if charged separately by the supplier shall form part of value of
services. GST subsumed all taxes except property tax, entertainment and
amusement to the extent levied by local bodies. Thus the entertainment tax
levied by local authority shall form part of value of supply i.e.