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GST Rollout: Movies In Multiplex Wouldn’t Be The Same Anymore

This very July, smoking cigarettes may not pinch the pocket but cinema tickets are unlikely to become cheaper. Instead stay home and watch a movie since DTH and cable TV operators may drop their prices once the goods and services tax (GST) is rolled out. Else, catch a play or a classical dance performance.

Smartphones too will cost less but those with a sweet tooth must pay for it — both pastries and cake, as also ice cream, could become dearer. Although the headline tax rate for movie tickets under GST will be 28%, they could become costlier since states are allowed to levy entertainment tax on behalf of local bodies.

Meanwhile, taxes on cable and DTH services are set to fall from July 1% to 18% from the current rate of 25%-40% — a total of the entertainment tax, service tax. Moreover, since the service providers are eligible to claim input tax credit, the tax incidence could be even smaller.

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