Here Are The Effects Of GST On Film And Entertainment Industry In India
Once the Goods and Service Tax is implemented across the nation, all other taxes will be eliminated, thus unifying everything under one roof. Film industries across India will be affected greatly.
News
oi-Lalithram
By Lalithram
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?
Continue
reading..
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.