The Tamil Nadu government has secured the enthusiasm of cinema audience in the state for quite a long time by putting a cap on movies ticket costs. Be that as it may, now, the advantages appreciated by the cine-goers so far will stop as the state is preparing to execute GST.
In 2006, the Karunanidhi government made a noteworthy move to give a relief to the film business by presenting 30% charge exception for movies with Tamil titles. Jayalalithaa’s administration, which came to control in 2011, changed standards and passed an order to postpone off expense for movies that meet a few criteria including “U” certificate from the provincial censor board.
From that point forward, individuals in control have utilized tax exclusions as a tool to control the cinema industry. Numerous movie producers indicted the issue after their movies were denied tax exceptions.
With all of the issues, the Tamil audience were never loaded, on account of the cap on ticket costs. A cine-goer paid Rs 120 at the maximum to watch a film in a multiplex. Presently, it is probably going to be changed.
The center has put the film under ‘sin industry’ and forced 28% tax on movies. Aside from GST, the state government is relied upon to force extra expense, along these lines making ticket cost dearer. This will at the end of the day guarantee the government will have a firm control over the business, which has frequently worked hand-in-glove with the decision government in Tamil Nadu.
Delegation from South Indian film businesses asked for the Center to rethink it and the Finance Minister Arun Jaitley changed it. The tickets costing Rs 100 and underneath have been brought under the 18% slab, while those costing higher than 100 will keep on falling in the 28% slab.
All things considered, GST will be all the more a boon for entertainment industry. The customers will get the advantage of low membership and film seeing expense and the multiplexes will see the climb in the benefit rates. Despite the fact that, the impact of the GST is unquestionably great, it might set aside some opportunity to emerge.