The 28% GST slab for entertainment tax has been slashed down and it is fixed to 18% this year by the GST Council for the tickets priced over Rs 100. The new reduced prices came into existence from January 2019. Superstar Mahesh Babu’s AMB cinemas is said to have pocketed Rs 35 lakhs for the month of January by violating the anti-profiteering clause as they did not reduce the ticket prices as per the Union Government’s directives.
However, AMB Cinemas clarified that they haven’t received any notices from the GST officials. AMB Cinemas obtained a court order that will have fixed ticket pricing for the multiplex and this would be effective from 22nd February. GST Rangareddy anti-evasion team forwarded all the details of the profiteering case to the GST state screening committee.
One of the GST officials stated that AMB Cinemas pocketed Rs 35 lakhs for January and did not reduce the ticket prices. This pocketed amount has to be paid back to the consumer welfare fund. AMB Cinemas says that the Telangana High Court fixed the ticket pricing as Rs 170 along with Rs 30 as GST and the total comes to Rs 200. This will be implemented from February 22nd.
