Bhopal: The owners of cinema halls in the city may incur loss after the implementation of Good and Services Tax (GST). However, while one of the single screen theatre owners said it might be up to Rs one lakh per month, others could not come up with the exact figure of loss. According to GST, a cinema hall owner has to pay 18 per cent of tax on a ticket that costs Rs 100; and 28 per cent for the one that costs over Rs 100.
Arvind Jain, manager of Bharat Cineplex on Chhawani Road, Patwa Market said, “Yes, we are paying 18 per cent tax after the implementation of GST. Earlier, we did not have to pay any tax on price of ticket worth Rs 100. We are incurring a loss of Rs 1 lakh per month due to GST.”
Jain further said, “GST might not be affecting the business of multi screen theatre owners. We are, in fact, spending more than what we are earning. In South, theatre owners have protested against GST. Though we have not protested yet, our Film Association, Indore has written a letter to the chief minister and the finance minister.”
“Thoda bahot nuksan to hai hi …. (We are certainly suffering some loss) but we are left with no option because it is a government decision,” said MH Rizvi, manager of Rangmahal Cineplex in New Market, adding “We have not been paying any tax because the state government exempted single-screen theatre from tax. Before that we were paying 20 per cent tax.”
“Earlier, we used to pay 20 per cent entertainment tax, but now we are paying 18 and 28 per after the implementation of GST. It means a Rs 90 ticket is now costing Rs 118 after adding GST and a Rs 150 ticket will now cost Rs 200,” said Chandan Singh, operations, in INOX at C21Mall on Hoshangabad Road,” adding, “We are in loss, but will not be able to give exact figures now. We may be able tell in August.”
Hemant Ghodle, associate in Cinepolis at Ashima Mall on Hoshangabad Road said, “Our sales are down by 5 to 10 per cent due to GST. Earlier, we paid 20 per cent as entertainment tax but now we are paying 28 per cent but the prices of our tickets are same as it was earlier.”
“Post GST, the cost of ticket has shot up, but we are not charging it from public. Charging of higher prices depends on movie not on what taxes we pay,” said Arnab Roy, unit head in Fun Cinema at DB Mall, MP Nagar.
Similarly, Vipin who works in PVR at Aura Mall, Arera Hills said, “The price is not changed. It may be changed later. It is too early to say anything about the impact of GST.”
