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Wed, Jul 26, 2017 | Last Updated 3:58 am IST

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INSIDE STORY: Center Shocks Tollywood with GST

INSIDE STORY: Center Shocks Tollywood with GST
INSIDE STORY: Center Shocks Tollywood with GST
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Union government has finalized the GST rates which will come into effect on July 1st. The Center announced that 'Cinema' will fall in 28% GST category which will replace the existing Entertainment Tax. To the utter dismay of the regional industries. Finance Ministry hasn't offered any differential rate for Regional Films.
INSIDE STORY: Center Shocks Tollywood with GST
Worst Hit due to this decision will be Telugu, Marathi and Kannada films while it will help Hindi Cinema big time. On an average basis, Hindi and English films pay 37% Tax in India. Regional Films pay around 16% due to the exemptions by the state governments.

INSIDE STORY: Center Shocks Tollywood with GST


GST Committee chooses to ignore this difference. Instead of treating Regional Films separately Finance Ministry autocratically brought in all under one roof ignoring the market conditions.
The 28% GST will maintain status quo on a National Level Tax Revenue basis but robs Regional films and is hugely beneficial to Bollywood.


INSIDE STORY: Center Shocks Tollywood with GST
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About the author

Nimisha is a typical Hyderabadi who raves about food and films. Formerly a Techie employed with Satyam, she writes about cinema since eight years and as for the other passion, she is a popular food blogger. She completely took her passion as work post the Satyam fiasco. Besides food and films, she is also fascinated to history and cricket.