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Your movie ticket prices may not come down after GST. Here's why
BT Online
Friday, May 19, 2017 | 17:33 IST
Your movie ticket prices may not come down after GST. Here's why

After the conclusion of two-day GST Council meet in Srinagar on Friday, Finance Minister Arun Jaitley said that cinema halls will be taxed at 28 per cent.

Notwithstanding, the effective tax cut on cinema halls under GST due to subsuming of entertainment taxes, movie ticket prices may not change after GST rollout in July.

In an interview to CNBC TV 18, Nitin Sood, Chief Financial Officer at PVR Ltd said, "At 28 per cent, we hardly have any headroom to look at prices. Our Food and Beverage taxes would go up."

"Classifying cinema as luxury is complete shocker. In some states, we had zero or less than 10 per cent entertainment tax," added Sood.

However, states like Maharashtra levy more around 50 per cent entertainment tax on movie tickets. In Uttar Pradesh (UP) entertainment tax is around 30-40 percent.

In Karnataka, West Bengal and Kerala the entertainment taxes are around 30 per cent. Once GST is implemented, all these state entertainment taxes will be subsumed in the Goods and Service Tax.

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