Before GST era prior July 01 2017 Indian Film Industry majorly comprising Hindi , Bengali, Punjabi, Telugu, Tamil, Kannada & Malayalam & other regional languages had its own different ticket rates, Entertainment tax structures in their states governed by own policies.
Ticket rates were on different scales like Single theaters having different in Cities, Taluk & Rural with Non A/c & A/c and Multiplexes having various rates on before noon and post noon ,week days / weekends / public holidays also in formats like Gold Class,2D ,3D,4D & Large Screen & IMAX etc
In this most of the regional films enjoyed 100% Tax exemptions on Entertainment Taxes in their own states like Kannada, Tamil etc and different tax rates for other languages screening in their states.
Considering all GST councils have huge herculean task to implement tax to maintain uniformity.
Post GST from July 01 2017 mainly on rate of admission of films all over the country to maintain uniformity two GST slabs were implemented
For Rate of admission not more than INR 100 GST is at 18%
And anything above INR100 GST at 28%
Before GST Implementation Indian Film Industry had its own fears & doubts about GST Tax slabs which they thought would kill the industry and regional films did not want lose their 100% tax exemptions benefits enjoying from many years & maximum tried to save & appealed to the State, Union & GST councils to keep away Film Industry or at least to be in minimum slabs on average not greater than 10%.
Now also still exists in the minds of film makers mainly comprising Producers / Distributors & Exhibitors sectors
Above these GST rates State Government have been empowered to levy additional charges on above tax rates as per their discretion.
West Bengal and Kerala Sate Governments were early to issue GST rate of admission on film tickets policy which still in some extent supporting their state language films.
Tamil Nadu film industry was badly affected post GST local government levied additional taxes which was exorbitant to survive and Exhibitors went on indefinite protest by stopping screening of films from July 03 2017 until it was withdrawn with heavy pressure from all sections of industry joining and screening resumed from July 07 2017.
Now post one month if analyse scenario many film industry stalwarts complaining was with this higher GST rate on tickets audience not ready to pay but if we look films released in last one month
Once again Good content driven films with new comers or less stardom have performed well at the ticket windows as per snap shot
Now Many Big Budgets and Stars films queued up for release in coming months with starting of Shar Rukh Khans “ Jab Harry Met Saleja “ on Aug 04 2017 need to see how these films perform at Box office with doubts and concerns post GST .
But finally what is left for Producers / Distributors & Exhibitors after deducting all their expenditures & taxes debate will be unanswerable and becomes not universal subject.
Ajay.K.R
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