Why and which films are tax free.
Why and which films are tax free.
News2News.in Explainer: There is a lot of politics going on regarding the film ‘The Kerala Story’. In some states it is being banned, while in some it is tax free. West Bengal Chief Minister Mamata Banerjee on Monday, May 8 said that an immediate ban is being imposed on the screening of ‘The Kerala Story’ in the state to avoid any incidents of hatred and violence. With this, West Bengal became the first state to ban the film. On the other hand, the next day after the ban in Bengal, the film was made tax free in Uttar Pradesh. Let us know on what basis the films are made tax free. Also know, how many films have been made tax free so far…
Why do governments make films tax free?
Generally those films are exempted from tax, which make people positively aware on some subject. Motivational films, films made on national heroes, films promoting communal harmony, films that give a good message, such films are made tax free. Its purpose is that as many people as possible can see that film. If the ticket prices remain low, then even people with low income will be able to see that film. Former Maharashtra Minister Balasaheb Thorat told that earlier the Revenue Minister used to decide to make a film tax-free, but now this tax on films also comes under GST.
How cheap are tickets when tax free
After the introduction of GST, only GST is applicable on movie tickets. There are two parts of GST, which includes State GST and Central GST. In such a situation, when the state government makes a film tax-free, it refuses to take its CGST or waives it. Whatever part of this is CGST, prior to the introduction of the Goods and Services Tax (GST) in 2017, each state in India had its own entertainment tax rate. If a film is given tax-exempt status, the entertainment tax is waived off. If the ticket price/admission rate of a theater is less than Rs 100, then 12% GST is levied on its ticket, but the GST slab is different for tickets with a price of more than Rs 100. 18% GST will be charged for tickets above Rs 100. By the way, most of the movie tickets cost more than Rs 100, so the tax is 18 per cent. In this 18 percent tax, half the tax is of the state government and half of the central government. After this the state government waives off its 9 per cent share.
does tax free make ticket free
No, tickets are not free, but they are available at a discounted price. According to Taran Adarsh, ‘It is beneficial for the audience. Low ticket prices encourage people to come to the movie halls, attract audiences. If the film attracts the audience, it is good for the state governments, but the actors do not get any benefit.
What is the benefit to people?
Making a movie tax free is a state subject, so only the states can take necessary steps for it. When we go to theaters or multiplex to watch a movie, the amount of money we have to pay for watching each movie there, in fact, many types of taxes are also included in that price. When a film becomes tax free, the audience does not have to pay multiple taxes on movie tickets. Watching movies becomes cheaper. This increases the audience watching the film. This benefits the viewers as well as the makers of the film.
When is a film declared tax free
There is no fixed rule for this. State governments may decide to waive or not to waive their claim of tax income on an individual film basis, based on their assessment of the relevance of the subjects addressed in the film. The promotion of tourism or production in a specific area as well as socially significant issues may be considered. Trade analyst Taran Adarsh said, “It completely depends on what the government thinks. This topic can be a reason to spread awareness… and it depends on the topic of the different movies.
what are tax free movies
In 1982, Gandhi was the first film to become tax free in the country. It was exempted by the Indira Gandhi government. Between 2005 and June 2022, 47 Bollywood films became tax free. The Kerala Story, The Kashmir Files, Chhapaak, Dangal, Uri, The Kashmir Files, PK, Lage Raho Munnabhai, Tanaji and Bajrangi Bhaijaan, Prithviraj, Padman, Toilet-Ek Prem Katha, Airlift Taare Zameen Par, PK and Dangal are the stars. Record of making 30 films tax-free within 4 years Akhilesh government’s name Between 2012-2016, the Akhilesh government of UP made 30 films tax-free, which is a record. It also has films like PK, Tevar, Hawaizaada, Dedh Ishqiya.
