The Kashmir Files: How much does it cost to reduce ticket prices if the movie is 'tax free'?
By Benson | Published: March 17, 2022 07:26 PM2022-03-17T19:26:00+5:302022-03-17T19:26:00+5:30
Next 
The movie The Kashmir Files has caused quite a stir in the country. Many states have made the film tax free. BJP leaders have demanded that the film be made tax free in Maharashtra as well.
If a film is tax free, the state government does not get revenue or entertainment tax. Janet benefits from this tax free. However, exactly how much benefit.
After the release of actor Ajay Devgn's 'Tanhaji: The Unsung Warrior', the film made a splash at the box office. At the time, the film was tax-free by the state government. Since then, The Kashmir Files has been pushing for tax exemption.
Before the introduction of GST, 40 per cent entertainment tax was levied on Hindi films. This picture changed after GST was introduced. Now that GST is a single tax, it is equally applicable to films in all languages.
As a result, the prices of movies in all languages have become the same. 12 per cent for tickets up to Rs 100; The next ticket is subject to 18 per cent GST. This tax is divided into two parts. One part state government (state GST) and the other central government (cent
When a film is tax free in a state, only their state GST is waived. If a movie ticket costs Rs 100, only 6 per cent tax will be levied on it.
Tickets priced above Rs 100 are taxed at 9 per cent. But nowadays in a multiplex, the ticket price is rarely less than Rs 100. Therefore, it is taxed at 9%.
That is, if the ticket is Rs 150 or Rs 200, the state government's 9 per cent tax is reduced by Rs 18 to Rs 200. So, if it is 100 rupees, then 9 rupees is less.
The state government only waives their tax after the film is tax free in the state. Audiences have to pay taxes to the central government. This does not mean that the ticket price will be directly affected but the film is supported.
