Mahesh Babu's multiplex AMB Cinemas served with notice for violating GST norms

FP Staff

Feb 20, 2019 17:32:28 IST

Mahesh Babu's theatre, AMB Cinemas at Kondapur in Telangana has been served with a notice for violating GST norms, reports DNA. AMB Cinemas reportedly refused to reduce ticket prices despite the revised tax rates as per the new ruling from this year. This was followed by the Ranga Reddy district GST Commissionerate anti-profiteering wing in Telangana sending the theatre a notice.

Mahesh Babus multiplex AMB Cinemas served with notice for violating GST norms

Mahesh Babu. Image from Twitter

The notice was reportedly served after officials from the anti-profiteering wing thoroughly checked several multiplexes and collected sample tickets. Mahesh Babu's theatre is however not the only culprit. Several single-screen cinema halls and multiplexes in Hyderabad and Secunderabad were in violation of the new GST rules.

The GST Council had stated that starting 1 January this year, tickets which costed Rs 100 and above would be categorised in 18 percent tax bracket instead of the earlier 28 percent. By keeping the GST rates similar to the old ones, AMB Cinemas was essentially denying the general public the benefit of tax reduction. Thus, legal actions may be taken against AMB Cinemas under relevant sections of the CGST Act.

AMB Cinemas, short for Asian Mahesh Babu Cinemas, was the actor's first venture into the business of film exhibition. The movie hall was inaugurated in 2018.

Updated Date: Feb 20, 2019 17:32:28 IST