LICENSING SERVICES OF FOR THE RIGHT TO BROADCAST & SHOW ORIGINAL FILMS.

[Sadanand Bulbule]

Dear Expert Sirs

Very good morning.

Here is a query relating to the interpretation of SAC Code relating to the ' Licensing services for the right to broadcast & show original films'. The details are as under:

1.Licensing services for the right to broadcast and show original films, sound recordings, radio and television program etc:

A dealer is is a film distributor & registered under GST Act for provision of Licensing for the right to broadcast service and shows original films which include sound recordings.This service includes licensing service for the right to reproduce, distribute or incorporate entertainment musical such as broadcasting and showing of original films, sound recordings, radio and television programs, pre-recorded tapes and videos. In his understanding, it is classifiable under the Service Account Code 997332 as per GST Act, 2017 and attracts 12% GST and accordingly it is admitted.

3. Whereas the inspecting authorities are interpreting the above mentioned services as falling under SAC CODE-999614: MOTION PICTURE, VIDEOTAPE AND TELEVISION PROGRAMME DISTRIBUTION SERVICES. GST RATE ON SAC CODE - 999614 is 18%.

3. In that event, in what way the services classified under SAC CODE. 997332 are different from the services classifiable under SAC CODE 999614 culminating in the higher rate of GST from 12% to 18% and whose understanding or interpretation is correct or should be correct?

4. Therefore the experts are requested to throw sufficient light on the impugned interpretation with relevant judicial rulings, if any.

With regards.

AI Summary

Debate on GST Classification for Licensing Services: 12% under SAC 997332 vs. 18% under SAC 999614 per Notification 11/2017 A discussion on a forum addresses the classification of licensing services for broadcasting and showing original films under the Goods and Services Tax (GST) Act. A dealer, registered under the GST Act, believes these services fall under Service Account Code (SAC) 997332, attracting a 12% GST rate. However, inspecting authorities classify it under SAC 999614, which has an 18% GST rate. Participants in the forum debate the correct classification, referencing Notification No. 11/2017 and relevant GST provisions. One response suggests contesting the authorities' view, supporting the 12% rate classification under SAC 997332.