Call to revamp GST to benefit Tollywood

Rajahmundry: The AP film industry is seeking relaxation in Goods and Services Tax (GST) as it has limited scope of marketability compared to Bollywood. 

A six-member delegation of producers and actors — AP State Film, Television and Theatre Development Corporation chairman Ambica Krishna, Rajahmundry MP M. Murali Mohan, Anantapur MP J.C. Diwa-kar Reddy, C. Kalyan, Burugupalli Siva Rama Krishna and Ambica Ramachandra Rao — met GST Council ex-officio secretary Hasmukh Adh-ia and submitted a representation seeking certain provisions in the existing GST in New Delhi on Thursday. Later, the delegation also met the GST Council chairman and apprised him about the need to make certain changes to benefit regional film industry.

The film producers said they pay 18 per cent GST in giving remuneration to the artists, technicians and others and when they sell their film, only 12 per cent GST is being imposed and this causes them nearly 6 per cent loss. They want uniform taxation of 18 cent for both the services.

If the cost of a film ticket is less than Rs 100, 18 per cent GST is being imposed, and if the cost is more than Rs 100, 28 per cent GST is slapped. 

They said for the sale of other products like TV, the cost of TV plus GST to be paid by the customer. But in case of a film ticket, the cost includes GST. They sought this anomaly to be sorted out and sought separation of both the cost of the film ticket and GST. 

In South India film industry, before GST, only 12-13 per cent tax used to be levied for various services, and in post-GST, it is 18 per cent and 28 per cent, causing more burden on the industry.

Tollywood film producers say when they go for shooting of films in other states like Rajasthan, Bi-har, Kashmir and others, they pay GST for hotels, restaurants and avail other services locally. 

They want the GST Council to help them facilitate reimbursement of the GST paid in other states in their native state.

Ambica Krishna said, “We have asked the GST Council members to make certain changes in imposition of GST to benefit the regional film industry, for which they responded positively.”

Let's block ads! (Why?)