Mahesh Babu’s AMB Cinemas pays up Rs 35 lakh

HYDERABAD:  The AMB (Asian Mahesh Babu) Cinemas, a joint venture between Tollywood star Mahesh Babu and Asian Group, on Thursday paid a demand draft of Rs 35 lakh to the Rangareddy GST Commissionerate, towards the transfer of illegal and undue profit pocketed by them without reducing the rate of entry tickets at their superplex by not complying with a notification that came into effect on January 1, 2019. ​

The GST officials had detected a case of undue and illegal profiteering on part of the AMB Cinemas and forwarded the details to state screening committee for further action. On Thursday, representatives of AMB informed officials that they did not reduce the ticket prices from January 1 as “they were under the view that the prices of cinema tickets are controlled by the state cinematography law. Subsequently, we reduced the prices to the extent of reduction of GST rate with effect from February 6 immediately we have come to know the requirement of reduction.”

The difference amount between January 1 and February 5, amounting to Rs 35,66,308.28, was transferred to the Consumer Welfare Fund. GST officials appreciated AMB Cinemas “for being the first in the country to return the element of unjust enrichment for the benefit of consumers”.

AMB Cinemas had failed to bring down ticket price despite GST rate reduction from 28 per cent to 18 per cent on tickets priced Rs 100 and above and 18 per cent to 12 per cent on tickets costing less than Rs 100, with effect from January 1, 2019.