GST Blow on Tollywood

Union government has announced that 'Cinema' will fall in 28% GST category which will replace Entertainment Tax. Ministry hasn't offered there will be any differential rate for Regional Films. Worst Hit- Telugu, Marathi & Kannada films. Boost to Hindi.

On an average basis, Hindi/Eng films pay 37% Tax in India. Regional Films pay around 16%. GST Committee chooses to ignore this difference. Instead of treating Regional Films separately Finance Ministry autocratically brought in all under one roof ignoring the market conditions. The 28% GST will maintain status quo on a National Level Tax Revenue basis but robs Regional films and is hugely beneficial to Bollywood.