Post GST | Movie Tickets in Chandigarh May Cost More

Municipal Corporation Chandigarh, is supposed to get around Rs 17 crores per annum. Yes, as reported by The Tribune the changed ordinance after the GST roll out, the MC is supposed to get around Rs 17 crores per annum from the multiplexes and theaters in Chandigarh.

The roll out of GST (Goods and service tax), has brought a major relief to the Municipal Corporation, Chandigarh. As per the Government of India’s reforms, the Municipal Corporation is now authorized to levy and collect tax. To be precise, the duty on amusement and entertainment are supposed to increase.

How and why did this happen?

Prior to GST (Goods and service tax), that was rolled out on July 1, 2017, the Chandigarh Administration was responsible of levying and collecting the entertainment tax. An ordinance has been issued to amend the Punjab Municipal Corporation Law (extension to Chandigarh ) Act 1994, by the Ministry of the Law and Justice and, the changes are expected to be implemented soon. After the introduction of the GST, it became necessary to issue the ordinance.

Some related technicalities

Under the Punjab Municipal Corporation Law (extension to Chandigarh ) Act 1994, the Central Government in Chandigarh has levied the entertainment tax and entertainment duty.
As applicable to the UT, the tax under the Punjab Entertainments Tax (Cinematography shows) Act 1954, is to be collected from the proprietor of the premises. Here, the premises mean the place where a cinematography exhibitions is held within the city.
Municipal Corporation Chandigarh had been demanding more shares in taxes for a long time. Now, after the GST roll out, the ordinance has fulfilled Chandigarh Municipal Corporation’s long-pending demand.
At present there are 10 places where one can enjoy movies including multiplexes and single-screen theaters which are now directly going to come under the Municipal Corporation for levying taxes and duties.