Announcing the revised rates for cinema hall tickets last week, the government revealed two GST slabs for the same - tickets below '100 will be taxed at 18%, while tickets costing more than `100 will be taxed at 28%. This new tax slab has come as a shock to the industry which had hoped for a uniform reduction in tax rate. Actors like Kamal Haasan criticised the 28% tax, claiming it would end their career. The Multiplex Association of India released a statement saying, "We had expected the GST rate for cinema to be either 5% or at worst 8%. Under the circumstances, we are completely shocked that the GST Council has decided to tax cinemas at the prohibitive rate of 28%."Adding more to their woes is the confusion that's prevailing regarding the price of tickets. While the rate of tax fixed at the highest slab of 28% for entertainment by the Goods and Services Tax (GST) Council, cinema hall owners say there has been no official communication in this regard.Will GST make movie goers in UP happy? (Aditya Yadav/ BCCL)But the scene may not be so dim in the state where experts say movie watching will become cheaper when GST is implemented, provided the base price of the tickets is not increased by multiplexes. As Ashish Agarwal, general secretary, UP Cinema Federation , points out, "There is no clarity on the matter yet as no meeting has been held to ascertain the effect of GST on cinema tickets in UP. But price of tickets should come down when the GST is implemented from July 1. The consumer in UP is bound to benefit from it because right now, he is paying a tax of 40% on each ticket. But with GST, it will come down to just 28%."So, even if the tickets fall under the top slab of 28%, it would mean a reduction of 12% tax from the existing tax structure in the state.Corroborating this, Aakash Khatri, general manager and cluster head for INOX , adds, "While overall tax is coming down, how the new structure will be implemented is still not clear. Having said that, it is a win-win situation for customers in totality and they will certainly gain from this new tax system."Pranjal Kapoor, manager, Wave Cinemas, says, "It may be possible that the price of the tickets comes down as the tax rate is also falling. But that can be said only after we receive official communication from the concerned government department. And it is also possible that we might see changes in the prices in online booking as well. In those, the convenience fee may also be reduced but it depends on the change in the service tax category for which again we have to wait till the GST is implemented."Manoj Saxena, manager, Star World Cinema, says, "We haven't received any instructions from the government yet regarding the implementation of GST. We are in a state of confusion on how things are going to proceed. A meeting of all the stakeholders with the sales tax department is scheduled in the coming days regarding the implementation of new GST rules and regulations. Hopefully, in the meeting we will be explained when and how to register for GST, how to pay the tax, who is going to levy it, etc. As far as benefits from GST are concerned, I don't think the reduction in entertainment tax is beneficial for moviegoers. They will be charged the same amount that they have been paying. Although online booking may get cheaper as the convenience charge will get reduced too."On the condition of anonymity, a manager of a single screen cinema hall, says, "We are going to have a meeting of all the proprietors and staff on the decision to reduce the price of tickets so that we can also benefit from GST bill. Rate toh hum kam kar denge par uske according response nahi mila toh humein nuksaan ho jaega. In this meeting, we will decide if we should reduce the ticket price and by how much."Chetan Mehra, owner, Kamal Cineplex , says, "It is only after the meeting with the sales tax department that we will be able to say whether GST will be beneficial or not. Single screen consumers will hardly be benefited as there won't be any major changes in the prices of tickets for single screen theatres. Hum log toh distributors ke saath bandhe hue hote hain. We also have to earn our profit from it.:- Abhishek.Shukla2@timesgroup.comwith inputs from Jyoti.Kanyal@timesgroup.com

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