Under the Goods and Services Tax (GST) Act, 2017, the right to admission to various events is subject to different tax rates and exemptions depending on the type of event. Here’s a breakdown:

Exempt:

• Circus, dance, or theatrical performance (including drama or ballet):These admissions are exempt from GST Act 2017.
• Recognized sporting events:Admissions to recognized sporting events are also exempt from GST Act 2017, provided the consideration (ticket price) is less than ₹750. (Note: The definition of “recognized sporting event” varies depending on the notification by the GST Council.)
• Specific events:Occasionally, the GST Council issues notifications exempting admissions to specific events, such as the FIFA U-17 World Cup 2017.

Taxable:

• Award functions, concerts, pageants, musical performances, or any sporting event other than a recognized sporting event:Admissions to these events are taxable at the standard GST rate of 18% (as of January 2024).
• Recognized sporting events with ticket price exceeding ₹750:If the consideration for admission to a recognized sporting event exceeds ₹750, the portion exceeding ₹750 is taxable at the standard rate of 18%.

Additional points to consider:

• The classification of events as “recognized sporting events” may change over time based on notifications by the GST Council.
• Some states may levy additional taxes on admissions to events, independent of the GST Act 2017.
• It’s always advisable to consult a tax professional or refer to the latest GST notifications for specific information about the taxability of admission to any event.

EXAMPLE

The concept of “right to admission to various events” in India is multifaceted and can be approached from different angles. Here are some examples to consider, depending on what specific aspect you’re interested in GST Act 2017

Constitutional Right:

• Article 14 of the Indian Constitution:This guarantees equality before the law and prohibits discrimination based on religion, race, caste, sex, or place of birth. This could be interpreted as an indirect right to access events without unfair discrimination based on such grounds.
• Article 15(2):This prohibits discrimination in public places on the basis of religion, race, caste, sex, or place of birth. This directly applies to events held in public spaces like parks or government-owned venues.

Specific State Context:

• Karnataka:In 2017, the Karnataka High Court upheld the state government’s order directing pubs and restaurants to allow entry to anyone above the legal drinking age, regardless of their gender. This is an example of a state-level law promoting equal access to certain events GST Act 2017.
• Maharashtra:The Bombay High Court has ruled that organizers of private events cannot impose dress code restrictions based on religion or caste. This reinforces the right to attend events without facing discriminatory dress code rules.

Specific Events:

• Educational institutions:Certain events and facilities within educational institutions might have age restrictions, dress code requirements, or other entry criteria for safety or academic reasons GST Act 2017. These restrictions typically don’t violate the right to admission if applied fairly and reasonably.
• Religious events:Entry to certain religious events might be restricted based on the specific rituals or traditions of the faith. While this might seem like a violation of equal access, it can be argued that respecting religious practices falls within the scope of religious freedom.

Overall:

The right to admission to various events in India is a complex issue with legal, social, and cultural nuances. While the Constitution guarantees equality and prohibits discrimination, specific contexts and event types might necessitate certain restrictions. Understanding the specific state laws, event context, and potential discriminatory aspects is crucial when analyzing the right to admission in each case.

FAQ QUESTION

Q: Which events are exempt from GST on admission fees under the GST Act 2017?

A: The following events are exempt from GST on admission fees:

• Circus, dance, or theatrical performance including drama or ballet:This includes all forms of traditional and contemporary dance performances, theatrical plays, and ballets.
• Award function, concert, pageant, musical performance or any sporting event other than a recognized sporting event:This covers a wide range of events like award ceremonies, music concerts, beauty pageants, and non-recognized sporting events.
• Recognized sporting event:Admission to recognized sporting events is exempt from GST, but please note that the definition of “recognized” varies depending on the sport and governing body.
• Planetarium:Entry fees to planetariums are also exempt from GST Act 2017

Q: What is the maximum ticket price for the exemption to apply?

A: The exemption for the above events only applies if the consideration charged for admission does not exceed Rs. 500 per person. So, if the ticket price is above Rs. 500, GST will be applicable.

Q: Are there any other exemptions for admission fees under GST Act 2017?

A: Yes, there are a few other exemptions for admission fees:

• Services by an artist in folk or classical art forms of music, dance, or theatre:If the consideration charged for such a performance does not exceed Rs. 1,50,000 and the artist is not acting as a brand ambassador, the service is exempt from GST.
• Admission to educational institutions:Fees charged for admission to educational institutions are exempt from GST.
• Admission to exhibitions of agricultural or poultry products:Entry fees to exhibitions of agricultural or poultry products are also exempt from GST Act 2017

Q: Where can I find more information about GST on admission fees?

A: You can find detailed information about GST on admission fees in the following resources GST Act 2017.

CASE LAWS

There haven’t been any significant case laws directly related to the Right to Admission to various events under the GST Act, 2017. However, some relevant rulings and interpretations might shed light on this topic:

1. Interpretation of “Supply” and “Consideration”:

• Supply:The right to admission to an event can be considered a “supply of service” under GST Act 2017 . Section 7(1)(b) of the CGST Act defines supply as “transfer of the right to use any goods for any purpose…”. Attending an event involves utilizing the space, facilities, and entertainment provided by the organizer, making it fit within this definition.
• Consideration:Admission fees paid for attending events constitute “consideration” for the supply of service. This establishes the transaction under the purview of GST Act 2017.

2. Exemption for Admission Tickets below ₹500:

Notification No. 12/2017-CGST (Rate) dated 21 June 2017 exempts “services by way of admission to entertainment events (excluding sporting events, theater and cinema)” from GST Act 2017 if the consideration per person doesn’t exceed ₹500. This exemption simplifies tax compliance for low-cost events.

3. GST Rate on Admission Tickets:

For events not covered by the ₹500 exemption, the applicable GST rate depends on the event type:

• Sporting events:18% GST
• Theater and cinema:18% GST
• Other entertainment events:18% GST

4. Place of Supply:

The place of supply for admission to events is generally determined by the location of the event itself. However, there might be complexities if the event organizer is located in a different state. Consulting with a tax professional is recommended for such situations GST Act 2017.

5. Absence of Direct Case Laws:

While there haven’t been specific case laws addressing the right to admission under GST Act 2017, rulings on similar service categories under the previous indirect tax regime can offer guidance. Additionally, clarifications and notifications issued by the GST Act 2017 Council can provide useful insights.