GST turns heat on Sandalwood: Actors who earn Rs 20 lakh to pay 28 pc GST

Film actors who receive over Rs 20 lakh remuneration to pay 28 per cent GST. Tickets priced over Rs 100 to pay 28 per cent GST and lesser than Rs 100 to pay 18 per cent GST State will not get a share from GST paid for value added services like shooting, rerecording, animation out of State but the respective states will get  

Film actors will come under GST that is coming into force from July 1 and all actors receiving a remuneration of over Rs 20 lakhs have to pay GST of 28 per cent. Tickets priced at over Rs 100 will attract  GST of 28 per cent and below Rs 100 will pay 18 per cent GST explained tax experts at a workshop organised by the Karnataka Chalanachitra Academy on Tuesday, reported Kannada Prabha.

A workshop to discuss the effects of GST on Kannada film industry was organised by the Karnataka Chalanachitra Academy at Gandhi Bhavan on Tuesday where tax experts provided information about GST to the film fraternity.  The State will not get any share of the GST paid for all value added services like shooting, re-recording, animation done outside the State but the respective states will claim it, he said.

It was evident that the Kannada film industry is in confusion with regard to GST that is being implemented from July 1.  It was also urged that the State government must be pressurised to reimburse the GST to producers as assured by the Chief Minister.

Karnataka Chalanachitra Academy president S V Rajendra Singh Babu said the GST has enhanced the responsibility of the Kannada film industry.  Earlier the 100 tax rebate provided by the government did not benefit the producers, who are always at loss.  The State government had to incur an expense of Rs 1000 crores but the benefit was shared by unknown parties. GST will definitely benefit the producers. Apart from the increase in ticket prices, the rest is to our advantage he said. The State government is always pro- Kannada film industry.  Babu expressed his confidence that the Chief Minister would keep his assurance of reimbursement GST.

B T Manohar, State Tax Committee president, FKCCI, said that the film fraternity should be thoroughly educated about the law and tax system. It is essential to know what tax must be paid. It is very easy to learn, as all transactions are made online. He assured that there is no need to fear GST. The folk artists are exempted from GST.  Karnataka State is in the forefront of tax paying states. However as far GST is concerned the State has no powers, he said, reported Kannada Prabha.