Now that the strike has been withdrawn, the movie halls across Tamil Nadu will start screening films from tomorrow (July 7, 2017). Producer Abirami Ramanathan who spearheaded the team that held talks with the Chief Minister and other ministers of the state has announced that GST as levied by the Union Government will be applicable on movie tickets from tomorrow. There is no clarity on the extra 30% Entertainment tax levied by the State Government.

As per the rates fixed by the GST council, movie tickets below Rs.100/- will attract 18% tax and tickets above Rs.100/- will attract 28% tax.

The maximum ticket price in Tamil Nadu has been capped at Rs.120/- before GST. Now that GST has come into effect, it is said that the tickets that were charged @ Rs.120/- tickets will be increased by Rs.33 that is to Rs.153 (Rs.120+28% GST) and the same principle will be followed for the tickets of lesser rates.

This is a rumour doing rounds in Kollywood but there is no official announcement regarding the new ticket rates after GST.

But if the above speculation is true, that would mean that the burden of the GST is being entirely shifted to the moviegoers. It is worth noting that the ticket rates fixed by the Government in 2007 which remained unchanged for a decade, included the 30% Entertainment tax payable to the State Government. The tickets films that received the Tax Exemption status from the Government were also sold at the same prices. In other words the tax benefit went to the producers and other stakeholders and it was not transferred to the end customers . This is received flak from many activists in the state.