Asian Group and Mahesh Babu’s AMB Cinemas served notice by GST Commissionerate
GST hasn't stopped haunting Superstar Mahesh Babu. The GST anti-profiteering wing, Ranga Reddy district, on Tuesday, served a show-cause notice to Asian Group and Mahesh Babu’s AMB Cinemas at Kondapur. The notice is to produce the reasons why AMB Cinemas is still collecting high ticket fares from customers against the reduced GST price.
A while ago, the GST Commissionerate had blocked the Superstar's bank accounts over an alleged non-payment of service tax of Rs 18.5 lakhs. In a clarification to this, Mahesh had said that the matter has been in the court and that he has always been a law-abiding citizen. Now, Mahesh Babu has fallen under the iron fist of GST anti-profiteering wing regarding his newly launched world-class super-plex AMB Cinemas.
In a raid conducted on the multiplex, the GST anti-evasion team found out that AMB Cinemas had not reduced the ticket prices even after the central government's notification. In accord to the GST Commissionerate, the GST over tickets costing more than Rs 100, the tax has been reduced from 28% to 18%. And for the tickets which are of Rs 100 or less, the GST rate has been pegged at 12% instead of 18% earlier.
The multiplex authorities have been penalized by about Rs 35 lakhs with immediate effect. The GST officials were authorized to book a case against AMB Cinemas under Section 171 of the CGST Act, 2017. Meanwhile, the AMB Cinemas' spokesperson said that they had only obtained a court order fixing the ticket price as per new GST guidelines. The new ticket rates would be effective from February 22nd.