India, currently, follows state-specified rates of entertainment tax — while states like Delhi and Maharashtra work on 40% and 45%, respectively, others like Punjab have zero per cent tax rate. New Delhi: The Multiplex Association of India has made a representation to the government, including the GST Council, to reconsider the tax rate for the film industry fixed at 28% last week. India, currently, follows state-specified rates of entertainment tax — while states like Delhi and Maharashtra work on 40% and 45%, respectively, others like Punjab have zero per cent tax rate. to levy an additional entertainment tax outside of the GST regulatory framework. Basically, this would mean that cinemas could end up paying, not just a prohibitive 28% GST, but possibly a 10%-25% local body entertainment tax as well.

Source: Mint May 23, 2017 15:11 UTC