TaxTMI 
TaxTMI 
2019 (7) TMI 96
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....sion under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 02 FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- 1. FACTS OF THE CASE The facts giving rise to this ruling are, in a short compass, as follows: 1.1 Bandai Namco Entertainment Inc. ('BNEI) is a Japanese video game development company and publisher, BNEI also releases videos, music, and other entertainment products related to its intellectual properties ('P). It has the operation in all major countries around the globe including India. 1.2 The Indian arm is operated by means of a private company set-up under the Companies Act, 1956 bearing the name of Bandai Namco India Private Limited ('BNIPL' or 'the Company' or 'We') 1.3 We have registered office at T-01, 3rd Floor, Oberoi Mall, Goregaon East, Mumbai 400063 and are engaged in providing amusement facility services and running family entertainment center in Oberoi Mall, Mumbai since October 2016. 1.4 We have stationed various gaming equipment and machines for different age groups, consisting of....
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....nt parks including theme parks, water parks, joy rides, merry-go rounds, go-carting and ballet. 9% - (iii a) Services by way of admission to entertainment events o access to amusement facilities including exhibition of cinematograph films, casinos, race club, any sporting event such as Indian Premier League and the like. 14% - 2. ASPECT ON WHICH ADVANCE RULING IS SOUGHT 2.1 With the advent of GST Notification 01/2018, which reduced the GST rate on services by way of admission to amusement parks including theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet, we seek an Advance Ruling as to the applicable rate of GST on the services/ activities of the Company. 3. OUR SUBMISSIONS: 3.1 The Company submits that the GST Notification 1/2018 reduced the rate on services by way of admission to amusement parks from 28% to 18% with effect from 25 January 2018. 3.2 Company falls under the ambit of 'amusement park' 3.2.1 The Company submits that the expression 'amusement park' is not defined in the GST law or Rules made thereunder. In this regard, the Company further contends that it is well established principle that the meaning of words ....
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....y seeks to classify its services under the ambit of 'amusement park'. 3.3. Comments of Fitment Committee 3.3.1 The Company submits that the above view is also supported by the comments of Fitment Committee formed under GST which reads as follows: "We may consider revising the rate of GST on admission to the amusement park to 18%. However, this proposal runs the risk of slates raising the tax on entertainment and amusement levied by virtue of Entry 62 of List II in the Seventh Schedule to the Constitution. GST Council may consider reducing GST, provided the States agree to not increase the entertainment/amusement tax on the same. This will ensure that the rate cut of GST is passed on to children for whom it is ostensibly being done." 3.4 The Company submits that the reduction in rate of GST was primarily on account of representation made by the Indian Association of Amusement Parks and Industries (IAAPI) as such amusement facilities attracts large amount of public especially children and which promotes social wellness or recreation 3.5 The Company submits that it is apparent that the attempt made by Government is to bifurcate the activities or ....
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....ark as provided in clause (iii) of entry no.34 of the Notification 1/2018 and be liable to pay GST at 18% under HSN 9996 with effect from 25 January 2018. 4.2 In light of the above, the Company prays that a suitable Ruling clarifying the applicable rate of GST on the outward supply of services in relation to admission or access to the gaming zone operated by the Company at 18% be issued by your good self. Additional submissions on 15.032019 Representation by Indian Association of Amusement Parks and Industry (IAAPI) High tax on amusement parks to hit industry: IAAPI Amusement park operators today asked the government to revise GST rate on the sector saying it was unfair to put entertainment industry for children at par with casinos, betting and race courses. Seeking a downward revision of tax rate to a maximum of 18 percent from the proposed 28 percent under the GST regime, Indian Association of Amusement Parks and Industries (IAAPI) said high taxation will be detrimental to the existence of the industry. "The government's policy with regard to amusement parks under the GST is not favorable and worldwide also the maximum tax levied on amusement park industry is 10 pr....
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....018 - Central Tax (Rate), dated 25.01.2019 issued by Government of India, Ministry of Finance, Department of Revenue, New Delhi. 2.1 "The Service by way of admission to entertainment events or access to amusement facilities including exhibition of Cinematograph films, theme parks, water parks, joy-rides, merry-go-rounds, go-carting, casinos, race-course, ballet, any sporting event such as dian Premier League and the like" are chargeable at the prescribed GST rate of 28% (CGST 14% SGST 14%) in term of S. NO. 34(iii) of the Notification No. 11/2017 - Central Tax (Rate), New Delhi dated 28th June 2017. 1.1 However, the above said entries of S. NO. 34(iii) of the Notification No. 11/2017 - Central Tax (Rate), New Delhi dated 28th June 2017, were bifurcated vide amendment Notification No 01/2018 - Central Tax (Rate), New Delhi dated 25th January, 2018, whereby services by way of admission to amusement parks including theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet at S. No. 34(iii) of Original Notification No. 11/2017 - Central Tax (Rate), New Delhi dated 28th June 2017, were made chargeable at GST rate of (CGST 9% and SGST 9%). 1.2 However, the serv....
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.... purpose". However in case of the subject amusement facilities provided by the notice, there is no scope that their gaming facility can be construed as a park, interalia because, it is not spread over a large area of land. Therefore the amusement facility of the notice by way of deploying gaming machines can neither be construed as a park nor as an amusement park, so that the benefit of lower rate of GST vide amended S. No: 34(iii) of Notification No. 11/2017 - Central Tax (Rate) may be available to them. (e) An amusement park is generally a big open area, containing various amusement facilities which themselves may be under a covered premises, however the subject amusement facility of the assessee by deploying gaming machine is relatively a very small covered/closed premises. (f) In view of the above, the subject amusement facility of the notice by deploying gaming machine cannot qualify as an amusement park. 5. The Hon'ble Supreme Court in a recent judgment in case of COMMISSIONER OF CUSTOMS (IMPORT), MUMBAI VS, M/s. DILIP KUMAR AND COMPANY & ORS., Civil Appeal No. 3327 of 2007 = 2018 (7) TMI 1826 - SUPREME COURT at para 52 held that; "(1) Exemption ....
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....quipment are classified based on the nature of games involving physical as well as mental skills which are coin operated and card operated such as: - Kiddie Rides (i.e. Carousel) - Arcade Games (i.e. Car Drive Game) - Redemption Games (i.e. Ball Drop Game) - Play area with entry and exit inside our premises At present applicant is discharging tax liability @28% as supply of services as per Sr. No. 34 of the Notification no. 11/2017 Central Tax (Rate) dated 28/06/2017. With the advent of Notification No. 01001 g-Central Tax (Rate) DT. 25 January 201 8, the entry in respect of amusement parks/facilities have been spilt into 2 different entries, and the effective rate of tax has been reduced from 28% to 18% on certain services. Therefore applicant is seeking ruling from this authority as to the applicability of GST rate of services on the service activities of the company. Following is the question on which ruling is sought. Question: Applicable GST Rate on operating gaming zone in one of leading malls in Mumbai? We find from the submission of the applicant that they are engaged in providing amusment facility services and also running fa....
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....luding theme parks, water parks, joy rides, merry-go rounds, go-carting and ballet. 9% - (iii)(a) Services by way of admission to entertainment events or access to amusement facilities including exhibition of cinematograph films, casino, race club, any sporting event such as Indian Premier League and the like. 14% - From the close scrutiny of notification entry, we have to decide whether the supply of services provided by the applicant fall within the expression 'Amusement Park' and thus qualify for reduced rate of GST. The term 'Amusement Park 'has not been defined under the Act. We therefore refer to the definition as per the Bombay Entertainment Act which is reproduced below: Section 2 (a-1): of the Bombay Entertainment Act extracted below: "(a-1) "amusement park" means a place wherein various types of amusements including games or rides or both (but excluding exhibition by cinematograph and video exhibition) are provided fairly on permanent basis, on payment for admission." Further we find that the term amusement park has been explained as per Wikipedia as below: "An amusement park is a park that features various attractions, such....