GST rollout to impact Kollywood, ticket sales

Hours before GST rollout, Tamil Nadu is still ambiguous about entertainment tax implementation, and the four Southern states will no longer be able to enjoy tax exemption for their own language movies

Published: 30th June 2017 05:49 PM  |   Last Updated: 30th June 2017 06:31 PM   |  A+A-

Ticket counter at Satyam Cinemas | Satyam Cinemas

Ticket counter at Satyam Cinemas | Satyam Cinemas

By Online Desk

CHENNAI: Hours before the GST rollout, the tax regime's effect is beginning to affect the Kollywood entertainment sector.

The confusion arises as the state government is yet to make this decision of adding the state tax to movie tickets.

The Tamil Nadu government has always put a cap on movie ticket prices. But with the implementation of GST, the southern state will no longer be able to enjoy tax exemption for its own language movies.

The Centre has put the cinema under 'sin industry' classification and imposed a 28 per cent tax on movie tickets. The tickets costing Rs 100 and below will be under the 18 per cent slab, while those costing higher than 100 will fall in the 28 per cent slab. 

On ticket booking portals such as Bookmyshow, bookings have been opened only for today, and the ticket sales for July 1st onwards are kept on hold. Kollywood fans and Theatre owners are waiting for some clarity about the tax regime.


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