As per media reports, GST anti-profiteering wing of Ranga Reddy district served showcause notice to AMB Cinemas owned by Mahesh Babu for allegedly violating norms. Prices of the tickets haven't been reduced and it accounts to denial of benefit to the movie goers. AMB Cinemas kept charging movie goers as per the old GST rates. An order was passed to book a case under Section 171 of the CGST Act, 2017.
Recently, GST Council reduced tax on tickets costing more than Rs 100 from 28 percent to 18 percent. Tickets costing Rs 100 or less were taxed 12 percent instead of 18 percent. These new rates came into effect from January 1st, 2019.
On behalf of AMB Cinemas Management, Asian Sunil issued a clarification over the media reports: 'We haven't received any notices related to GST. It's true that GST Officials inspected our multiplex but we have been charging only as per the new GST rates. Submitted the records related to it to the officials. That's it...there is neither any notice nor penalty. If we were served notices seeking penalty, We are ready to pay the amount immediately. Even GST Officials were surprised with speculations that notices were served to AMB Cinemas. We won't violate any norms and follow the orders of the authorities strictly'.