With the Centre rolling out the Goods and Services Tax (GST) regime on Saturday, all Kannada, Tulu, Kodava, Konkani and Lambani films will be forfeiting entertainment tax exemption that they enjoyed for two decades.
This will most likely lead to exhibitors hiking ticket rates for Kannada and regional films by 18 to 28%.
Though it is necessary for exhibitors, who have migrated to GST regime and got GST Identification Number (GSTIN) to print new rates on tickets, those yet to get GSTIN can issue tickets by charging 18% GST for tickets under ₹100 and 28% for tickets above that from July 1, till they get their GESTIN.
Though the government has assured the film industry of compensating the loss due to GST, the industry is keeping its fingers crossed as nothing has been mentioned about the “incentive” so far. Chief Minister Siddaramaiah had announced in the legislature that the Kannada film industry will be insulated from the GST effect.
“Commercial tax authorities have assured us of remaining flexible for a period of one month till the film industry gets adjusted to the new tax regime,” said K.V. Chandrashekar, leading exhibitor.
He added that of the 120 or more single screens in the State, most have migrated to the new regime.
K.S. Basavaraj, Joint Commissioner (e-audit) Commercial Taxes, said, “It is a simple procedure and the industry can migrate to it as two more days are left for the rollout of GST.”
The Karnataka Film Chamber of Commerce (KFCC) is also conducting a series of sector-wise meetings to create awareness among producers, distributors, and actors. “A meeting of exhibitors was held at KFCC today to sort out issues being faced by them including migration to GST. Producers will be meeting on Friday. Again there will be a final round of meeting with the exhibitors,” said, Umesh Banakar, vice-president, KFCC.
As of now, there will be no problem for the screening of films and exhibitors have been advised to show the increased rates on the ticket and file the returns to the tax authorities on July 21, said Mr. Chandrashekar.
