New tax structure revealed after a GST, It explains clearly how its affects to cinema theatre. Even before and after GST ticket price is same for RS.120. Before GST the tamilnadu entertainment tax should be extempted to zero percent. Now its included mean, local tax included upto 30%.
So due to GST theatre owner needs to pay local tax is 30% and GST is 28% so overall need to pay 58% to governament tax. So its facing hugh loss to owners nearly rs. 30 to 35 per ticket. Hence due to get solution all theatres in tamilnadu closed right now.