The Goods and Services Tax (GST) for tiatr may appear to deal a severe blow on the industry, but it will put the commercial tax authorities also in a tizzy on how to get this segment within the control of the new tax regime. All dramas which have a turnover of Rs 20 lakh and above will come under the ambit of GST. Tickets priced Rs 100 and below will be liable to pay 18 per cent tax, while anything above that will attract 28 percent. Interestingly the ground realities are starkly different for this segment in comparison to others with the drama industry just about managing to work its way out of the tax regime so far.
The irony is that tiatrists coming under GST are required to register themselves and account for each and every expense, including the flow of tickets regulated through the department of commercial taxes. They need to understand the concept of input credit. What could be even worse is that directors may be forced to hike ticket prices with inclusion of GST.
For the Konkani movies segment, GST comes as a hard blow and the 28 per cent levy would only mean that they have to increase the ticket price proportionately. Earlier, when a Konkani movie is being shown at a theatre like Inox, there was a 25% entertainment tax and a 10% services tax. However, producers of Konkani movies enjoyed a 25% entertainment tax waiver from the state government. Under GST regime, the government is not in a position to extend such a waiver. On the flip side, film producers will now be compelled to come up with quality films if they are to sustain and live up to the hike.
The challenges now before the commercial tax department would be how to bring the tiatr industry under GST purview or rather how to keep a vigil on their accounts. It's a known fact that majority of tiatr dealings are unaccounted and on purely cash basis. Right from ticket bookings, which are managed by the directors themselves, to payments towards stage settings, musicians, lights and payments to artistes, all are paid in cash with hardly any vouchers and receipts involved. There is no track of income and expenses, except for the director or producer maintaining his own personal records. Even if there are systems put in place at government-owned venues like Ravindra Bhavans and Kala Academy, Panaji, there are sizeable number of village shows which are absolutely beyond accounting controls.
Tiatr have been central to every Goan, irrespective of religion and caste. GST is an acronym which tiatrists are now required to be familiar with. The complexities of accounting and filing returns, which were till now beyond the domain of the tiatr industry is now staring at this segment. Even as the tax department sets out on its job, the government is expected to face a fiery stage onslaught for letting the taxman loose on them. The long arm of the commercial tax department may soon be reaching out to the industry and it remains to be seen how the tiatrists brace up.
The irony is that tiatrists coming under GST are required to register themselves and account for each and every expense, including the flow of tickets regulated through the department of commercial taxes. They need to understand the concept of input credit. What could be even worse is that directors may be forced to hike ticket prices with inclusion of GST.
For the Konkani movies segment, GST comes as a hard blow and the 28 per cent levy would only mean that they have to increase the ticket price proportionately. Earlier, when a Konkani movie is being shown at a theatre like Inox, there was a 25% entertainment tax and a 10% services tax. However, producers of Konkani movies enjoyed a 25% entertainment tax waiver from the state government. Under GST regime, the government is not in a position to extend such a waiver. On the flip side, film producers will now be compelled to come up with quality films if they are to sustain and live up to the hike.
The challenges now before the commercial tax department would be how to bring the tiatr industry under GST purview or rather how to keep a vigil on their accounts. It's a known fact that majority of tiatr dealings are unaccounted and on purely cash basis. Right from ticket bookings, which are managed by the directors themselves, to payments towards stage settings, musicians, lights and payments to artistes, all are paid in cash with hardly any vouchers and receipts involved. There is no track of income and expenses, except for the director or producer maintaining his own personal records. Even if there are systems put in place at government-owned venues like Ravindra Bhavans and Kala Academy, Panaji, there are sizeable number of village shows which are absolutely beyond accounting controls.
Tiatr have been central to every Goan, irrespective of religion and caste. GST is an acronym which tiatrists are now required to be familiar with. The complexities of accounting and filing returns, which were till now beyond the domain of the tiatr industry is now staring at this segment. Even as the tax department sets out on its job, the government is expected to face a fiery stage onslaught for letting the taxman loose on them. The long arm of the commercial tax department may soon be reaching out to the industry and it remains to be seen how the tiatrists brace up.
