HYDERABAD: Watching a movie at a theatre is going to be a bigger drain on your pocket soon. The Telugu film industry, that has refrained from passing on the high GST to its viewers for nearly a year in the hope that the government would roll back the high taxes, is now mulling hiking film ticket prices in Telangana and Andhra Pradesh.
The Centre has imposed 18% GST on film tickets priced below Rs 100, whereas the GST on those priced over ₹100 is 28%, deeming it a luxury service. Earlier, the GST Council had proposed taxing movie tickets at a flat 28%, but later decided to slash the tax on tickets less than Rs 100.
“We have been having discussions with the state governments and ticket prices will be hiked soon. If not immediately, at least in a year’s time it should be done,” former Andhra Pradesh Film Chambers of Commerce (APFCC) president and Tollywood director-cum producer Tammareddy Bharadwaj said.
He also pointed out that the cost of production has risen manifold in the last one year due to imposition of GST on various aspects of film making.
He was quick to add that even hiking ticket prices may not be of much help as it will impact footfalls. The only way the film industry can expect to tide over this challenge is by ensuring the content is good. “If the film is good, people will come to watch it. High ticket prices won’t deter a viewer from watching a good movie,” he said.
Source : https://timesofindia.indiatimes.com/city/hyderabad/movie-ticket-prices-to-rise-as-gst-woes-trickle-down/articleshow/64691276.cms