Tollywood actor Mahesh Babu's multiplex AMB cinemas received a show cause notice from the Ranga Reddy district GST Commissionerate in Telangana for the violation of GST norms, suggested media reports.
AMB Cinemas, located at Kondapur in Telangana, was reportedly selling tickets at higher rates despite the reduced tax rate from January 1 as per the new norms from this year.
According to media reports, the notice came after officials of the anti-profiteering wing inspected several multiplexes and collected sample tickets.
Starting January 1, the GST Council had said that tickets worth Rs 100 and above would be categorised in 18 per cent tax bracket instead of the earlier 28 per cent, while the GST rates on tickets costing up to Rs 100 would be 12 per cent from the existing 18 per cent. By charging old GST rates, AMB Cinemas was not passing the benefit of tax reduction to public.
In December last year, the government had reduced the GST rate on cinema tickets to make movie viewing more affordable and boost the growth of the industry.
Report also suggested that the Ranga Reddy district GST Commissionerate issued similar notices to the managements of other multiplexes and single-screen cinema theatres that involved in GST violations in Hyderabad and Secunderabad.
AMB Cinemas, acronym for Asian Mahesh Babu Cinemas, is the Tollywood superstar's first venture into the film exhibition business, was inaugurated in December last year.
Edited By Chitranjan Kumar