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The Goods and Service Tax (GST) will come into effect starting from July 1. GST helps eliminate separate taxes for different purposes and clubs them all under one roof, for all kinds of sales and services. With GST coming into effect, how will it affect entertainment & film industry?
People have already started calculating their profits and losses taking GST into account now. Discussions have started everywhere and its effects are being calculated from Sandalwood to Bollywood.
According to GST, theatres who have their ticket prices below 100 rupees are eligible to pay only 18% tax whereas, theatres and multiplexes whose ticket prices are more than 100 rupees are entitled to pay a whopping 28% tax.
Since the date for implementation of GST is almost near, people in the filmdom are worried sick about their taxation. On the other hand, the filmgoers are tensed about whether the prices of tickets will rise or not.
How will it affect the audience?
Steep Ticket Prices
Until today, the ticket price was fixed based on the entertainment tax imposed by the respective state government. Presently, in all the states in India, the entertainment taxes vary from 0 to 110%. After GST gets imposed, the cost of the tickets will climb up even more in almost all the states, except Uttar Pradesh and Jharkand, where the price of tickets are expected to go down.
More Than 9000 Theatres Across India
Presently, there are more than 9000 theatres all over India. After the effectuation of GST, for the theatres having ticket prices below 100 rupees will be eligible for 18% tax whereas, the theatres having ticket prices above 100 rupees will have to cough up 28% tax.
What About Karnataka?
Very recently, people in Karnataka found reason to be happy because the entertainment tax was greatly reduced and the ticket prices had come down by a great deal. But, just as the GST gets realised, the ticket prices will no doubt shoot up again.
Non-Kannada Films Can Ease Up A Little
The time being, in Karnataka, non-Kannada language movies are fined an entertainment tax of 30% but after July 1, the taxes will come down to 28%, thereby easing a 2% tax margin.
Fares In Multiplexes Will Change
Karnataka State Government had imposed a maximum capping of 200 rupees per ticket in multiplexes across the state, a few months ago. It has not even been three months since it happened, and now, it is all going for a toss. After GST, all language films will cost the same so the ticket prices are going to very by a great deal.
Request To State Government
The President of Karnataka Film Chamber of Commerce, Sa. Ra. Govindu has apparently submitted a request to the state government describing the effects GST will have on the film industry and to reduce the tax percentage.