From Friday onwards, cinema theatres will charge 28% of Goods Services Tax separately over and above the price of movie ticket. If the ticket is priced at Rs. 120, the customer will be paying approximately Rs. 153.6. Similarly, an 18%GST will be charged for tickets priced at Rs. 100 and less.
Asked about the decision on 30% local body tax, Abirami Ramanthan, president, Tamil Nadu Theatre Owners and Distributors Association, said that State government has formed a committee to look into the issue. “We presented our point of view and the officials in the government were receptive to our problems. We hope that the issue will be resolved in our favour,” he said.
As of now, no decision has been taken on local body tax.
Furthermore, few theatre owners have expressed fears that the State government could force the theatre owners to pay the 30% local body tax. “Now, it is possible for us to pass on the GST to customers. We fear that the government might now expect us to pay a 30% local tax on the ticket price.