GST launched: Tamil Nadu theatres to shut down from 3 July due to lack of clarity on tax amount

The government has announced 28% GST on film tickets priced above Rs 100 but the Tamil Nadu theatre owners are unclear on whether entertainment tax will be imposed on top of that.

IANS July 01, 2017 08:47:50 IST
GST launched: Tamil Nadu theatres to shut down from 3 July due to lack of clarity on tax amount

Chennai: The Tamil Nadu Film Chamber of Commerce on Friday announced an indefinite shutdown of theatres across Tamil Nadu from 3 July due to lack of clarity on the tax amount that will be levied after the Goods and Services Tax (GST) implementation.

GST launched Tamil Nadu theatres to shut down from 3 July due to lack of clarity on tax amount

Representational image

GST comes into effect from Saturday. "The state government should clear the confusion (on how much tax amount theatre owners will be charged) over the weekend. From Monday, all shows across theatres in the state will be suspended," Abirami Ramanathan, President of the Tamil Nadu Film Chamber of Commerce, told reporters here.

Multiplexes in the city are yet to open bookings for weekend movies as they are unsure if the government would levy entertainment tax over GST.

"If entertainment tax is added on top of GST, we will be forced to pay 53 per cent of the ticket rate as tax to the government. It won't be feasible for us as it will affect the livelihood of over 10 lakh families associated with the industry," he said.

The government has announced a GST rate of 28 per cent on cinema tickets above Rs 100.

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