New multiplexes in state hit GST roadblock

RUDRAPUR: Movie watching has become costlier with the imposition of Goods and Services Tax (GST) on July 1. Multiplexes have been put under the highest tax slab of 28% with restaurants and five star hotels. This has not only increased the ticket prices, but a centralized tax scheme has brought entertainment tax exemption, which every newly built multiplex gets, to an end. Those who have invested huge amounts in constructing multiplexes under state government scheme are now running from pillar to post for some relief.

On June 06, 2011, Uttarakhand government had announced a 100% grant on entertainment tax for new multiplexes. Arjun Gupta, managing director of Rave Cinemas at Kashipur road, said, “We invested over Rs 3.5 crore, which we would have got as returns in five years with the exemption of entertainment tax. Officials are not even answering our queries and with no new policy we are left in the lurch.”

SS Khampa, assistant commissioner GST of US Nagar, said, "We have communicated with the authorities and will sort out the issue soon. The multiplex owners will not be deprived of what they are promised of as per the agreement".