Theatres face GST body action for ticket pricing
Ch Sushil Rao | TNN | Feb 3, 2019, 09:43 IST
(Representative image)HYDERABAD: Anti-profiteering measures have been initiated by the Hyderabad GST Commissionerate against theatres and multiplexes which have not reduced the price of tickets from January 1, 2019. Theatres have to do it as rate of GST has been reduced and the benefit passed on to movie-goers.
M Srinivas, Principal Commissioner informed on Saturday that while some multiplexes have reduced the rates, some did not. The anti-profiteering measures were initiated under section 171 of the CGST Act, 2017 against Prasads Imax in the city as the prices had remained Rs 150 for screen 1 to screen 5 and Rs 250 for screen 6. The details of the profiteering along with evidence collected was forwarded to the state-level screening committee of Telangana for initiating appropriate action as per law, the official said.
Ticket prices had to be reduced from January 1, 2019 following GST reduction from 28 per cent to 18 per cent for ticket prices of more than RS 100 and from 18 per cent to 12 per cent for ticket prices of Rs 100 and less. This decision was taken by the government on the recommendation of the GST Council’s 31st meeting on December 22, 2018.
Hyderabad GST Commissionerate officials verified sample ticket from Inox at GVK One mall and PVR at Punjagutta and found that the ticket prices had been reduced from Rs 150 to Rs 138 and from Rs 250 to Rs 230. However, it was found that the prices of tickets had not been reduced at Pasads Imax though the benefit of GST reduction had to be passed on to the customers.
Principal Commissioner Srinivas has advised all owners of multiplexes and movie theatres to pass on the benefit of reduction in GST rate on to movie goers failing which action would be taken under the provisions of Anti Profiteering under GST laws.
M Srinivas, Principal Commissioner informed on Saturday that while some multiplexes have reduced the rates, some did not. The anti-profiteering measures were initiated under section 171 of the CGST Act, 2017 against Prasads Imax in the city as the prices had remained Rs 150 for screen 1 to screen 5 and Rs 250 for screen 6. The details of the profiteering along with evidence collected was forwarded to the state-level screening committee of Telangana for initiating appropriate action as per law, the official said.
Ticket prices had to be reduced from January 1, 2019 following GST reduction from 28 per cent to 18 per cent for ticket prices of more than RS 100 and from 18 per cent to 12 per cent for ticket prices of Rs 100 and less. This decision was taken by the government on the recommendation of the GST Council’s 31st meeting on December 22, 2018.
Hyderabad GST Commissionerate officials verified sample ticket from Inox at GVK One mall and PVR at Punjagutta and found that the ticket prices had been reduced from Rs 150 to Rs 138 and from Rs 250 to Rs 230. However, it was found that the prices of tickets had not been reduced at Pasads Imax though the benefit of GST reduction had to be passed on to the customers.
Principal Commissioner Srinivas has advised all owners of multiplexes and movie theatres to pass on the benefit of reduction in GST rate on to movie goers failing which action would be taken under the provisions of Anti Profiteering under GST laws.
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