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Karnataka plans schemes to help Kannada films avoid the GST pinch

  • Chief Minister Siddaramaiah assured that the Kannada film industry will not suffer due to Goods and Services Tax
  • Kannada films were exempted from tax earlier, and this proved a popular way to keep ticket prices cheap
  • But a GST of 28 per cent tax for tickets over Rs 100 and 18 per cent for tickets below Rs 100 will be now imposed.
GST tax on sandalwood movies

The happy days are over for the Kannada film industry - as far as tax is concerned. The Kannada film industry enjoyed tax exemption benefits all these years. But it seems the industry can no longer escape paying tax under the new GST regime. But all is not lost.

The State government has come forward to extend its support to the Kannada film industry, by looking into ways how the tax can be refunded. Care will be taken not to burden the Kannada film industry due to GST, said Chief Minister Siddaramaiah.

He made the announcement after presenting the GST Bill 2017 at the Legislative Council. Speaking further, he noted that the State government had exempted the Kannada film industry from taxes, but now the GST might prove to be a burden for the industry.

For tickets above Rs 100, GST is 28 per cent and for tickets below Rs 100 it is 18 per cent. This will come into effect from July 1 in Karnataka also. To help the industry, the State is looking into the modalities of repaying the GST to film industry, the CM said, reports Kannada Prabha.

MLC and actor Jayamala said she intended to bring up the issue and thanked the CM for taking the initiative. CM Siddaramaiah, responding in a lighter vein, said “You please sit down, I mentioned it so that others don’t rake up the issue. The government is pro-Kannada film industry always. Have we not facilitated the industry so far?”

Responding to this Jaymala said “Definitely yes, it is because of the help from the government that the number of Kannada films has increased from 70 to 200, annually. Further reducing the tax would result in progress.”

Siddaramaiah said the government was ever ready to help progress in Kannada film industry. The modalities of refunding the tax will be worked out after discussions, he said.

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