Bollywood divided over GST! Khan’s support it, producers say it will be a bane !

The whole Film Industry is quite disrupted from GST, some are okay with the implementation of GST while others are not.


With the implementation of Goods and Services Tax (GST) from July 1, watching movies might turn out to be costlier. A flat GST of 28% is imposed on all movie tickets.

Amid representations from the regional film industry, the GST Council has decided to reduce the tax on movie tickets below Rs 100 to 18 per cent from the previously fixed rate of 28 per cent. Tickets price above Rs 100, however stay at the same rate.

Now watching films in theaters is being considered to be luxurious than having a meal at an exquisite five-star hotel.


The whole Film Industry is quite disrupted from GST, some are okay with the implementation of GST while others are not.

Regional films will be hit harder than Bollywood films, as they currently pay either nothing or subsidized the entertainment tax.

If we talk about Kannada films it had been exempted from entertainment tax from nearly two decades, but now audiences will have to bear the burnt for the GST.


Bollywood renowned personality like Shah Rukh Khan, Amitabh Bachchan, Salman Khan have all given their approval and welcomed the decision taken by Government.

If we talk about Khans of Bollywood King Khan said, “Notwithstanding my limited knowledge of financial stuff, the GST Bill is an awesome advancement for our country’s potential. Congrats to us.

Whereas Salman Khan is also in full support of the 28% tax slab for cinema under GST.


Dabangg Khan said, “Whatever the government has done, they must have done it with proper planning” Showing interest Parineeti Chopra said, “We have to follow the government’s rules and regulations.”


Tiger Shroff spoke about the same saying, “What has to be done has to be done. However, it’s not the greatest thing right now for buying tickets or for people who want to watch our films or go for a movie. But if they (viewers) are enticed by the promos or are fans of the artist, they will just watch the film anyhow.”

While most of the actors seemed to be fine with the decision, B-Town producers don’t seem to much in favor of the tax.


Aashiqui 2 producer Mukesh Bhatt said the government is turning the entertainment industry into a gambling industry. “They have to understand that we are a creative industry, we are different from gambling and tobacco industries. Why are we treated like the paan and gutkha industry? Are we injurious to health?”

President of the Film and Television Producers Guild of India, Siddharth Roy Kapur totally disobeyed over new tax policy.

He said, The industry had proposed a rate of 5% in our representations to the government, in order to revive a business that has been struggling with the lack of fresh investments in new cinema screens and a significant increase in online piracy. The average entertainment tax collected nationally by the government across all states and languages was in the range of 8-10% of gross box office revenue. Hence logically the GST rate should not have been more than 12%, in order to avoid any exchequer loss. Instead, the government has equated the film sector with the gambling and betting industries and taxed it at the highest slab of 28 per cent.

Hence, the conclusion we can see is very clearly that Bollywood is divided when it comes to supporting GST and now we have to wait and see how much good or bad the tax does!