GST anti-profiteering wing, Ranga Reddy district, officials on Tuesday served a show-cause notice on actor Mahesh Babu new theatre named AMB (Asian Mahesh Babu) Cinemas, for violating GST norms. The officials found that the Mahesh Babu AMB Cinemas had not reduced the price of tickets, thereby denying the benefit of reduction in tax rates to movie-goers.
The GST Council had reduced the tax on tickets costing more than Rs 100 from 28 percent to 18 percent. Where the Mahesh Babu AMB Cinemas ticket price was Rs 100 or less, the GST rate was pegged at 12 percent from 18 percent earlier. The rates were effective from January 1.
The RR GST Commissionerate anti-profiteering of wing inspected various multiplexes within the twin cities and collected sample tickets from a few. It was found that AMB Cinemas was continuing to charge at the old GST rates, following which a show-cause notice was issued. The sleuths were authorized to book a case under Section 171 of the CGST Act, 2017.