GST hits Cinema, Theaters to be closed indefinitely

GST on cinema, Abirami Ramanatha on GST impact, Kollyworld

Abirami Ramanathan, president of Tamil Film Chamber of Commerce has announced that the screening of shows will be stopped from July 3 across Tamil Nadu. He said to the press that about 800 theaters in Tamil Nadu will stay closed till the Tamil Nadu government clarifies regarding GST implications on the entertainment business.

“The state government needs to clarify how much tax will be levied on theaters after GST rollout. We request the state government to sort out the confusion immediately,”.

“Some 10 lakh families are depending on our sector. If entertainment tax is levied by the state on top of GST, theater owners will end up paying up to 53 percent of the ticket rate as tax,”

He added that Kerala government has clarified and has also directed the municipalities not to charge any tax on top of GST.

However, a small fraction of the industry is not happy with the protest as they think this will affect the current movies that are doing well in theaters.

Producer of the movie Ivan Thanthiran Dhananjayan Govind was one among as his movie is successfully running in theaters and was well appreciated by many.


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