ULBs demand exemption of GST on entertainment

Amaravati: The Fifteenth Finance Commission has suggested Local Bodies to ask AP Finance Ministry to move their demand regarding exemption of entertainment tax from Goods and Services Tax Act. It further observed that it also will suggest the same to central government to take the issue into consideration for GST Council, which is deciding body for any alterations or amendments to the GST Act.

During Commission’s third day visit to Amaravati on Friday, the representatives from various local bodies including both urban and rural local bodies submitted their requests to the Commission members, here in Secretariat at Amaravati.

On this occasion, Vijayawada Municipal Corporation Mayor Koneru Sridhar asked the Commission to exempt the entertainment tax from the ambit of GST Act. He said that the Vijayawada alone experienced Rs 18 crore to 19 crore loss and it would be more than Rs 130 crore loss for all the urban local bodies in the state.

He also requested them to ensure qualitative share to the Municipalities and Corporations from the GST collections, as the urban local bodies exhausted their resources after introducing GST in the Country. He said that after bifurcation of AP, the Vijayawada city became part of capital city Amaravati and hence it was very difficult to survive on its own limited resources.

Anantapuram Mayor Madamanchi Swarupa said that the urban local bodies did not get the assured funds under 14 Finance Commission. She requested 15 FC to recommend more funds this time, at least.