In india there is a big confusion about the txaes levied by gst in various products. The president of tamil movie theaters abirami ramanathan declared that all shows across theatres in tamilnadu will be suspended as no clear declaration about tax on theatre owners. This led a big problem in movie and film industry in india.
Currently, movie tickets have a base price of Rs50 for single screens and Rs120 for multiplexes with three or more screens. 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.
“If entertainment tax is added on top of the GST, we will be forced to pay % of the ticket rate as tax to the government,” said Ramanathan.
Earlier the multiplex theatres had announced that the online booking for this weekend would be suspended.