Sandalwood industry sources have stated that Goods and Service Tax (GST) will come into effect starting from July 1. GST helps eliminate separate taxes for different purposes and clubs them all under one roof, for all kinds of sales and services. People have already started calculating their profits and losses taking GST into account now. Discussions have started everywhere and its effects are being calculated from Sandalwood to Bollywood.
Meanwhile the ticket price was fixed based on the entertainment tax imposed by the respective state government. Presently, in all the states in India, the entertainment taxes vary from 0 to 110%. After GST gets imposed, the cost of the tickets will climb up even more in almost all the states, except Uttar Pradesh and Jharkand, where the price of tickets are expected to go down.
It was also stated that there are more than 9000 theatres all over India.
After the effectuate of GST, for the theatres having ticket prices below 100
rupees will be eligible for 18% tax whereas, the theatres having ticket prices
above 100 rupees will have to cough up 28% tax.
