18% GST applicable on Entry Fee and Amusement Facility in Public Park: AAR [Read Order]

Entry Fee - GST Applicable - Public Park - Entry Fee - AAR - Taxscan

The Rajasthan Authority for Advance Ruling (AAR) ruled that 18% of GST applicable to the entry fee and amusement facility in the public park.

The applicant was a contractor, who was given a contract for the purpose of operation, maintenance, and management of a park named Subhash Udhyan which was a Municipal Park situated in the city of Ajmer. The municipal park also provided for the amusement facilities such as a toy train, pedal boat, etc. Further, the applicant is of the view that there is no Goods and Service Tax (GST) applicable to the contractor if the charges of the ticket of the park and amusement facilities are less than Rs. 250/- per person.

Therefore, the issues raised were that at what rate of GST must be applied on the entry fee and on the amusement facility of the pedal boat and toy train will be applicable to the contractor?

The bench comprising of J.P. Meena, Member of Central Tax and Hemant Jain, Member of State Tax held that on the entry fee and amusement facilities such as toy train and pedal boat total of 18% of Goods and Service Tax (GST) is applicable. Further, the bench divided 18% of GST and state that 9% of State Goods and Service Tax (SGST) is applicable and 9% of Central Goods and Service Tax (CGST) is applicable, which makes a total of 18% of the GST.

The bench while elaborating stated that the provisions of the Rajasthan Goods and Service Tax (RGST) Act are similar to those of Central Goods and Service Tax (CGST). If in case any provision would differ it will be specifically mentioned.

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