South Film Industry Seeks GST Exemption 

Hyderabad: Having taken an opinion from tax consultants that GST will have an adverse effect on the film industry South Indian Film Chamber of Commerce (SIFCC) is planning to make a representation to the Union Finance Ministry seeking exemption from the GST.

If in case, GST is not exempted then the film industry is of the opinion that the tax should be collected from audience. The audience would then have to pay ticket rate, including GST. At present, entertainment tax is included in the ticket price itself.

“As it is, the film industry is not doing well, and the GST will deal a deadly blow to it. We want to avert a crisis in the industry,” said C Kalyan, SIFCC president. Kalyan is also president of AP Film Chamber of Commerce and vice-president of Film Federation of India.

In both the Telugu states an entertainment tax of seven percent for small films and 14 percent for big films is there, but if 22 percent of GST is imposed, the industry will have to shell out more money towards tax.

Reportedly, there is no tax in panchayats of Andhra Pradesh and Telangana but now theatres in villages will also have to start paying GST.

“There is hardly any money flowing into film industry now. Some new producers are coming up with projects, which is actually keeping the film industry alive. Due to high taxation, even these people might shy away fearing losses,” said Kalyan.

Bollywood and Hollywood films will stand to gain as in most states, the entertainment tax on non-local films is high.

In AP and Telangana it is 24 percent. If GST is introduced, non-local films will be benefited as the GST will be less than the entertainment tax slab now.