Monday, 23 July, 2018

GST rollout: Theatres in Tamil Nadu to stop screening films

The Federation said they welcomed the GST but they were unhappy over the corporation tax which was imposed by the state government. File The Federation said they welcomed the GST but they were unhappy over the corporation tax which was imposed by the state government. File
Andrew Cummings | 02 July, 2017, 02:20

Prime Minister Narendra Modi and President Pranab Mukherjee launched the GST from the historic Central Hall of Parliament.

Therefore, to protest against this ruling, the theatre owners have made a decision to shut shop and all over Tamil Nadu theatres would remain closed from Monday. "But all such taxes have now come under GST and would lead to a situation where price rise will be controlled", he told reporters. This would be in addition to the 28 percent tax levied under GST for tickets that cost over Rs 100.

Stating that around 20 producers/filmmakers would be "totally affected", the Council's press release says that the state government, too, would need time to understand their demands and act on it. Tamil Nadu Theatre Owners and Distributors Association president Abirami Ramanathan who announced the cancellation of movie screenings said, "The final price will be around the existing '120. From Monday, all shows across theatres in the state will be suspended". Also, he added that Kerala Government had notified that municipalities would not levy the tax on top of GST.

It won't be feasible for us as it will affect the livelihood of over 10 lakh families associated with the industry', he added.

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"We worked throughout Friday night for the successful implementation of GST", said a finance department employee of ITC Grand Chola, Chennai. But the current rate needs to be revised, otherwise, it will run regional cinema.

However, GST will make India a common market with common tax rates and procedures and remove economic barriers. "In the next Council meeting we will raise those issues", he said.

According to the GST experts, it might turn out to be a boon for cinema owners since their profit margin might shoot up. The theatres collect Rs 1 per ticket as maintenance charge.

GST has the potential to take the entertainment industry to another level.

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