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The Goods and Services Tax (GST) is going to make movie nights just marginally cheaper in City Beautiful. Cinema buffs now pay 30 per cent entertainment tax on each ticket. When GST comes into force, they will pay 28 per cent tax at the multiplexes, where no ticket is less than Rs 100. On Sunday, the GST Council slashed the GST rates for cinema tickets up to Rs 100, but that is not creating any ripples in Chandigarh.
When the new tax regime rolls out on July 1, a business class ticket at Fun Republic, which costs Rs 400 inclusive of the entertainment tax now, will come down to Rs 392. Similarly, a normal ticket which costs Rs 150 at a 2-D hall at DT Cinemas in IT Park, will cost around Rs 147 after July 1. A gold ticket that costs Rs 200, will be sold at Rs 196 under GST rates. The ticket rates are almost similar at City Emporium mall in Industrial Area Phase 1.
Activist Ajay Jagga, who authored a book, Guide to the concept of GST, said, “There is nothing to cheer about for cinemagoers. People watch movies at multiplexes in Chandigarh and there is rarely any ticket which is below Rs 100.”
He added, “The only thing is that after GST, there will be just one tax on your bill.” A normal ticket on the weekday which costs Rs 180 each at the PVR Cinemas at Elante mall in Industrial Area Phase 1 will now cost Rs 176. The gold ticket that is priced at Rs 550 here will cost around Rs 541.
Keshav Garg, chartered accountant and faculty member for GST Indirect Tax Committee of ICAI, said: “There is going to be least impact on the cinema tickets in Chandigarh where the entertainment tax was already 30 per cent. It can create an impact in those states where entertainment tax is up to 65 per cent.” Keshav added that food and beverages sold at cinemas would also continue to cost more or less the same.
“Since moviegoers are already paying a tax of Rs 18.5 per cent (VAT- 12.5 per cent and service tax 6 per cent) on the food and beverages being served at the multiplex, the same head, after the implementation of GST, would come in the slab of 18 per cent. There would be a difference of just 0.5 per cent in the snacks and beverages one buys there,” said Rajiv Sharma, a chartered accountant.