The latest viral news is GST which is commonly heard in the crowd these days; GST will fuel inflation for the short term. The GST rate starts at 5% and 18% taxation services such as restaurants; movies etc. are bound to increase prices and now as part of the GST TS government passed orders in increasing the ticket prices in all movie theaters.
And now it’s high time that people need to spend more on movie tickets. As per the GST the revised price will affect every single screen, as well as multiplexes, with immediate effect.Rise in the new GST (Goods and Services Tax) that should come into force on July 1st but Some places have already increased ticket prices from Friday last with the release of Allu Arjun’s ‘DJ’. All theaters will charge the new prices from July 1.
Moviegoers now have to pay Rs 300 for one gold ticket with GST
The ticket prices were revised in accordance with an increase in taxes under GST, which has put movie tickets in the 18 per cent tax slab. The ticket prices in GHMC and other municipal corporations have been increased from RS 20 to Rs 40 for lower class and Rs 120 from Rs 75 for AC class.
Where as in multiplexes, a single movie ticket will now cost Rs 300 for Gold/Royal Class and Rs 200 for Executive/ Regular class, against Rs 250 and Rs 150 at present. However, multiplexes should charge 20 per cent less than the maximum ticket price for seats in the first two rows from the screen.The government issued the orders on June 23rd 2017 with the immediate effect but it is not publicly notified through any of its official site. And now on Monday Govt has published with all its new changes on the prices of movie tickets.
The taxes that replaces GST:
The GST replaces numerous different indirect taxes such as:
- Central Excise Duty
- Service Tax
- Countervailing Duty
- Special Countervailing Duty
- Value Added Tax (VAT)
- Central Sales Tax (CST)
- Entertainment Tax
- Entry Tax
- Purchase Tax
- Luxury Tax
- Advertisement taxes
- Taxes applicable on lotteries.
As per the expert’s analysis, they have a list of few items that could come for cheaper as well as costlier. Here is the list:
According to experts, these items could become costlier:
- Cigarette prices likely to go up as GST rate for tobacco will be higher than current duties
- Commercial vehicles such as trucks will become costlier
- Mobile phone calls may get costlier as service tax will go up
- Textile and branded jewellery may become costlier
And these could become cheaper:
- Auto: Prices of entry-level cars, two-wheeler’s, SUV’s may fall
- Car batteries likely to get cheaper
- Paint, cement prices likely to fall
- Electronics items like fans, lighting, water heaters, air coolers, etc. will get cheaper