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Why GST is Good for Hindi & English Film Consumers & Disaster for South Film Consumers [Read Details]

+1 vote
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Note :-
1. In GST, 18-20% [Some artical says 22%] Tax applied on Nett Ticket Price
2. Central Govt Allowed Additional Tax by Local bodies like municipalities to impose on movies.
3. The Government has allowed this in order to safeguard the interests of the local bodies giving them the freedom to choose the rate that they want to impose on Movies.
4. The whole purpose of the GST to serve as a single tax gets defeated with this allowance
.
[A] For Hindi Fillms, Before GST implementation :-
.
Ticket Price = Nett plus E.Tax [20-60%] plus Service Charge [₹7-₹20]
.
After GST implementation :-
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Ticket Price = Nett plus GST [18~22%] plus Service Charge [₹7-₹20] plus Additional Tax by Local Body [X%]
.
So, In States Like Maharastra [45% Etax], Bihar [50%] & Jharkhand [110%] Where Tax is Very High, Ticket Price is Likely to ↓↓ for Hindi Films
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In Zero E.tax States & In Gujrat [20%], Delhi [20%], Tamil Nadu [15%] where ETax is Low then GST, Ticket Price Likely to ↑ for Hindi films. If Price is not increased, Distributor/Exhibitors Profit likely to ↓  
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In AP/T [24%] & Karnataka [30%], where E Tax is Slightly High then GST, No change in Ticket Price for Hindi Films [If Additional Tax Applied by Local Bodies]
...
...
[B] For South Film Industry :-
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Entertainment Tax  for Regional Films :-
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Tamil Nadu : 0%
Karnataka : 0%
Kerela : 25%
.
AP/T : 0% in Panchayats/Village Level Theatres and
- 7% E.tax for small films & 14% for big films
..
After GST implementation South Film consumers will Pay 18-22% E.tax and Additional Tax [By Local Bodies]
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So After GST implementation South Film Industry suffer most & may face crisis.
.
Note :-
- South Film Industry Body (SIFCC) asking the Centre to exempt it from the GST.
- But Finance Ministry does not agree to this.
http://www.gstindia.com/gst-impact-media-entertainment/
http://m.timesofindia.com/city/hyderabad/GST-to-affect-film-industry-badly/articleshow/54438064.cms
http://timesofindia.indiatimes.com/city/bengaluru/Impact-of-GST-and-demonetisation-Kannada-film-industry-seeks-government-support/articleshow/55821626.cms
http://www.firstpost.com/entertainment/film-and-television-producers-guild-urge-government-for-lower-gst-rate-on-film-industry-3282494.html
asked Mar 29, 2017 in Box Office Related by Rocsky Unit Manager (31,686 points)
24% Accept Rate

edited Mar 29, 2017 by Rocsky

1 Answer

+2 votes

Hope it will help to decrease avg ticket price nd increase footfalls

answered Mar 29, 2017 by RAEES-R Location Scout (4,337 points)

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