PANAJI
GST rate on movie tickets costing Rs 100 or below was reduced to 18% from 28% earlier. This relief in tax rate will not apply to Konkani movies because their tickets are mostly priced in the range of Rs 180 to 200.
This means that Konkani movies will attract a steep GST rate of 28%, which totally threatens their existence.
A Durgaprasad, producer of acclaimed Konkani movie like ‘Enemy’, said, “As it is, it is difficult for us to recover our production cost. But, with GST rate of 28%, it will become impossible to recover our costs.”
Durgaprasad explained the economics of Konkani cinema, as he said, “Typically, a ticket for a Konkani movie costs Rs 200. Due to GST of 28%, Rs 56 will work out as tax on every ticket. We can’t pass on this to the audience, as it will make tickets too expensive. If we absorb the GST, we will be left with Rs 144 per ticket.”
He continued, “Suppose, I am showing my movie at Maquinez Palace, which has 230 seats. Assume an occupancy rate of 60%, which means 138 tickets per show will be sold. Rs 144 per ticket for 138 tickets amounts to Rs 19,872 per show recovery. From that, we have to pay Rs 7,500 to ESG as rent per show. Overall, cost per show including ESG rent is around Rs 16,000. This means I am left with under Rs 4,000 per show. How do I recover my investment with such a low return?”
As of now, if a Konkani movie is being shown at a commercial theatre like INOX, there is a 25% entertainment tax and a 10% services tax. However, producers of Konkani movies end up getting 25% entertainment tax waived off from the state government.
