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Indian cinema gets GST set at 28 percent
Posted on: 20/May/2017 4:51:03 PM
Giving a response to the huge hurdle to the cinema industry of India, the goods and services tax is finally set as 28 percent.
For many years, variations in tax at different states on film exhibition have been causing suffering to the people. Entertainment tax is applicable for all movie tickets and commercial shows.
The entertainment tax in the Hindi film industry is the highest with 45 percent, and makes it the prime beneficiary. However, in the regional cinema, in addition to low tax rates, many south Indian states also have a cap on ticket prices which is a disadvantage to them.
Until now, the tax rates imposed at Bengali, Kannada, Malayalam and Marathi cinema have been very low of the range 10-15 percent. Now, the new rates will mean to be double their previous rate.
There is going to be almost the same rate with the Hindi market. The regional film producers and exhibitors need to decide whether or not to take the extra burden to the consumers.
Abolishing the net box office concept is an advantage, say experts. The entertainment tax amount will be deducted out of gross earnings. So, now, in India, the figures of gross box office collections will be similar to Hollywood that will have better clarity of the business.
