In December last, the GST Council reduced tax rates on cinema tickets.  Tickets costing above Rs 100 started to be taxed at 18% instead of 28%.  And those costing below Rs 100 taxed at 12% instead of 18%.

The Hyderabad GST Commissionerate has audited three multiplexes to verify if the new rates have been introduced in order to pass on the benefit to the end customer.  It audited Prasads multiplex, PVR at Panjagutta, and GVK INOX as part of the audit.

"Upon sample audit of tickets issues at these multiplexes, we found that Prasads multiplex has not implemented the reduction in total.  Two screens continue to charge tickets at old tax rates.  Accordingly, anti-profiteering measures have been initiated against the multiplex," a statement from the GST commissionerate says.