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Published on:

February 21, 2025

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Recreational Services GST Rates and SAC Code 9996 Insights

In India, the introduction of GST has led to the build-up of a more uniform and consistent taxation system for various services in the recreational sector. With the GST sequence, every service is classified and ranked with Service Accounting Codes, called SACs. The recreational services fall broadly under SAC Code 9996. It is important for businesses engaged and immersed in entertainment and leisure activities to know the GST rates applicable for their services, be in proper and valid compliance with tax laws, and formulate their pricing systems accurately, inclusive of the correct burden of tax.This article hopes to serve as a detailed guide to GST rates related to SAC 9996. The applicable rates and their business implications and compliance requirements will be explained. An understanding of these matters is vital for operators in entertainment to avert any consequent legal troubles or penalties. Being familiar with GST rates and laws will allow businesses to act accordingly and incorporate them into their fiscal considerations.

What is SAC Code 9996?

SAC Code 9996 is for recreational, cultural, and sporting services. This sector covers myriad activities ranging from amusement and gaming parks to all performing arts and cultural shows.

Subcategories under SAC Code 9996

SAC	Code Description
99961	Performing arts and cultural services
99962	Amusement park and theme park services
99963	Sports and fitness-related services
99964	Gambling and betting services

GST Rates for Recreational Services under SAC Code 9996

While dealing with recreational services, the GST rates under the SAC Code 9996 depend upon the type of recreational service offered.

Breakdown of GST Rates:

GST Rate	Recreational Service Type
18%	Amusement parks & theme parks
18%	Cultural events & performances
18%	Fitness centers & sports coaching
28%	Gambling & betting services
12%	Circus, theatrical productions

Tax Implications of SAC Code 9996

The imperative of this needs to be understood for businesses from a compliance as well as a tax planning perspective.

Key tax considerations:

1. Input tax credit (ITC)- the recreational service providers are eligible and suitable for such ITC for the GST paid on inputs and infusions including expenditures like equipment, maintenance, publicity, and promotion.

2. The place of supply - It is something that dictates the applicable GST provisions for the determination of an interstate or intrastate trade.

3. Compulsory registration under GST- If the turnover of the entity exceeds Rs 20 lakhs annually on account of providing recreational services (in the special category states, the limit will be Rs 10 lakhs), it should mandatorily get registered under GST.

Appraisal of GST Rate for Various Services Offered for Entertainment and Relaxation.

As a precaution against misclassification, the business should:

1. Look up the rate of GST as mentioned in the GST official tariff list provided by the CBIC.

2. Consult a tax practitioner so that there may be clarification on GST applicability.

3. Use GST online portals like ClearTax from time to time to retrieve up-to-date rate classifications.

Comparison of SAC Code 9996 with Other Service Categories

SAC Code	Service Type	GST Rate
9996	Recreational services	12%-18%
9997	Education services	Exempt
9995	Personal care services	18%
9963	Hotel & restaurant services	5%-18%

Compliance and Documentation for SAC Code 9996

The recreational activity businesses must adhere to the following GST compliance measures:

1. Right Billing: Note the SAC code 9996 on the invoice. Appropriate billing becomes important in business transactions Suitably, important information on an invoice note should include the SAC code 9996. This specifically identifies the services availed and aids in the segmentation for taxation possible.

2. GST return filing: GSTR-1, GSTR-3B, and annual returns must be filed in due time.

3. Record Keeping: Detailed accounts and reports of transactions must be maintained for audit compliance. This would ensure and provide that adherence has been given to audit requirements and necessities.

Conclusion

SAC Code 9996 represents a wide collection of recreational services. The total various Goods and Services Tax (GST) applicable to these services ranges between 12% and 28%. The exact rate applied differs based on the particular nature of the service provided. This information is very essential to businesses engaged in recreation, amusements, and cultural activities; thus they need to know their GST liabilities so that on-the-ground law is followed.

Missing curriculums in GST are used as a sort of sanction penalty and serve as one of the major building blocks for effective tax planning for businesses in this sector. These businesses and companies should constantly watch tax modifications and shifts related to the current rates. Knowing these rates will not only enable them to do excellent financial and economic planning but may also qualify and authorize them for input tax credits (ITC), which can considerably lower or reduce their total tax liability. Businesses may seek a GST professional's help to get specific and detailed advice. Doing so can help enterprises comply with their requirements and conditions and optimize their strategy and approach regarding taxes.

FAQs

1. What percentage of GST is charged or set for theme and amusement parks?

The GST rate for theme parks and amusement parks is 18%.

2. Do sports coaching and fitness center services attract GST?

Yes, fitness center, gym, and sports coaching are under SAC Code 99963 and chargeable to 18% GST.

3. Would GST be applicable in the case of cultural performances?

GST would indeed apply to cultural performances, which are taxable under SAC Code 99961 at 18%.

4. What is the GST rate charged or levied for gambling and betting services?

The elements of gambling, betting, or lottery would all attract 28% GST under the SAC code

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