After the GST was rolled out on the midnight of June 30, theatre owners have been faced with a GST of 18 percent, apart from the 30 percent tax imposed by the municipal corporation, adding up to an enormous 48 percent.
As many as 1,100 theatres will go on an indefinite strike, starting Monday, opposing the new Goods and Services Tax (GST) that has been levied starting July 1.
This new rate, as per a local theatre manager, will diminish their business in the state.
Under the new tax regime, taxes of 28 percent and 18 percent will be levied for tickets costing over and under Rs.100 respectively, in addition to a municipal tax of 30 percent imposed by the state government on theatres.
Tamil Nadu theatres will be halting advance bookings of tickets from Sunday and all shows across the state’s theatres will be suspended starting next week, with film theatre associations demanding a roll back of the municipal tax.
The film industry is also expected to stage a protest on Monday.
Under the GST regime, exports will be zero-rated in entirety unlike the present system where refund of some of the taxes does not take place due to fragmented nature of indirect taxes between the Centre and the States.
However, GST will make India a common market with common tax rates and procedures and remove economic barriers. GST is largely technology driven and will reduce the human interface to a great extent. GST is expected to improve ease of doing business in India.