No movies to be screened in Tamil Nadu from July 3

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

Summary: The Goods and Services Tax (GST) will result in a drop in the prices of commodities while boosting manufacturing, State Finance Minister D. Jayakumar said on Friday. The theatre owners are claiming that the lack of clarity on the pricing of movie tickets under the GST regime which began on Saturday is the reason of the sudden strike.

With the cinema theatres announcing indefinite shutdown from Monday to protest against 18 per cent GST levy, the Tamil Nadu Film Chamber of Commerce today petitioned Chief Minister Edappadi K Palaniswami and sought his intervention on the issue. The government has announced a GST rate of 28 per cent on cinema tickets above Rs 100. "If entertainment tax is levied by the state on top of GST, theatre owners will end up paying up to 53 percent of the ticket rate as tax", Ramanathan added.

GST will be implemented across the country from today, the 1st July and the government has put the entertainment industry in a 28% tax slab.

With confusion prevailing over ticket pricing, many theatres, including multiplexes, have withheld advance online and offline bookings for shows from Monday.

With over 91% of traders registering with the Commercial Tax Department, Tamil Nadu joined the other 27 states to be a part of the GST rollout on Saturday. "But the concern is how much of this amount will reach the producers". "We will suffer heavy losses".

To ensure a successful implementation of GST, the Tamil Nadu government said it would hold 650 workshops across the state to clarify doubts of the taxpayers. "Some 10 lakh families are depending on our sector". This is inclusive of the entertainment tax levied by the state or the local body and it varies from 20%-30% based on the location. "However, there is no information yet on whether to collect entertainment tax or not", said the official.

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