With the Centre rolling out the Goods and Services Tax (GST) from July 1, Kannada film viewers will have to shell more to watch their favourite actors on the big screen. This is because the entertainment tax exemption that Kannada films enjoyed will cease to exist under the new tax regime. With this, Kannada films will have to compete with other language films.
Both single screens and multiplexes in the State have to collect 18% GST from audience of all-language films for tickets priced below ₹100 and 28% for tickets above ₹100, as no decision has been taken by the government on addressing the issue. The ball is now in the court of Karnataka government to insulate Kannada film industry from the GST effect.
Though the other language film goers too have to pay GST of 18% to 28%, in reality it is a reduction of rates for them, as they are currently paying an entertainment tax of 30%.
All the multiplexes and single screens across the state will have to show increase in rates on the tickets already printed and file their returns to Commercial Tax Department on July 21, as per norms.
Speaking to The Hindu , S.V. Rajendra Singh Babu, chairman of the Karnataka Chalanachitra Academy, said there was no need for anxiety, as the tax authorities themselves admit that there would be a gestation period of one month. “Everything should fall in place by then,” he said.
Meanwhile, responding to questions on whether screens, which are yet to get GST identification number, would be shut down, K.S. Basavaraj, Joint Commissioner (Commercial Taxes), said such a scenario would not arise. “The theatres can still get their GST identification numbers in the next three days by providing necessary documents. It is a simple procedure,” he said.
