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December 2017

18% GST FOR CABLE TV HARDWARE


GST Has Been Reduced From 28% To 18% For Practically All Cable TV Hardware

In a major relief, the Goods & Services Tax (GST) has been slashed from 28% to 18% for all Cable TV related hardware.

The decision was taken at a meeting held in Guwahati, Assam, the GST council under the chairmanship of finance minister Arun Jaitley agreed remove most items from the 28% GST slab, except 'sin' and luxury goods. The lower GST rates are applicable from midnight of 15 November 2017.


DETAILS

The following GST Codes have been shifted from 28% GST to 18% GST, which are relevant to our industry.


8525

Transmission apparatus for radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video cameras recorders [other than CCTV].


8527

Reception apparatus for radio-broadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock.


8528

Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio broadcast receiver or sound or video recording or reproducing apparatus [other than computer monitors not exceeding 17 inches].




8529

Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528.


8536

Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders, and other connectors, junction boxes), for a voltage not exceeding 1,000 volts. Connectors for optical fibres optical fibres, bundles or cables.


8544

Insulated (including enamelled or anodised) wire, cable and other insulated electric conductors, whether or not fitted with connectors [other than Winding Wires; Coaxial cables; Optical Fiber]


All Digital Headend Equipment, CAT-5 Cables, Dish Antennae & Optical Connectors Are Now 18% GST


ITEMS BENEFITTED

For all practical purposes, all Cable TV hardware: Digital Headend Equipment (8525 / 8527), Dish Antenna (8529), Optical Connectors (8536), CAT-5 Cable (8544), Coaxial cables etc will all be levied 18% GST, for which Input tax Credit (ITC) can be claimed, by GST registered entities.


OTHER EXEMPTIONS

Payment of IGST/GST has been exempted on temporary import of professional equipment by accredited press persons visiting India to cover certain events, broadcasting equipment, sports items, testing equipment, under ATA carnet system. These goods are to be reexported after the specified use is over.


SOFTWARE

To obviate dispute and litigation, whether permanent transfer of Intellectual Property (IP) is a supply of goods or service:

(i) Permanent transfer of Intellectual Property (IP) other than Information Technology software will attract 12% GST.

(ii) Permanent transfer of IP in respect of Information Technology software will attract 18% GST.


HOTELS & RESTAURANTS

All restaurants will be charged GST @5% without any Input Tax Credit (ITC). Hence no GST credit can be claimed on the 5%.

Outdoor Catering will be charged @18% with ITC

Restaurants in Hotel will be charged @5% without ITC (except hotels with room tariff of ₹ 7,500 and above where tax will be charged @18% with ITC)


ENTERTAINMENT TAX

Entertainment tax levied by the states has earlier itself, been subsumed (included) in GST. However, local municipalities have the authority to levy a Municipal Entertainment tax. This municipal levy continues, and remains an irritant to Cable TV and DTH operations.

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