Despite huge criticism from economists and political analysts, the BJP sarkar has taken the decision of imposing common tax system to all goods and which straightaway affects the country's economic development. The GST will be rolled out from July 1.
Well, like many other sectors, regional cinema will also have to face the adverse effects of GST. The government will levy a tax of 18% to film tickets that are sold to below Rs.100 while the tax will remain to be 28% to tickets above Rs.100.
As we all know, Stylish Star Allu Arjun's highly anticipated commercial entertainer DJ - Duvvada Jagannadham is slated for release on June 23. The makers have to pay the tax on old system till 30th of June and the film completes 9 days of run then. Thereupon, the tax will be levied from makers as per GST rates. It's learnt that the films will lose huge share from multiplexes and single screens from A centers wherein tickets are sold out high prices.
DJ may be affected least with GST's implementation because the film maybe collecting around Rs.70-80 crores by then. If at all the film carries blockbuster talk, it can reach to safe shores with 100+ crores collections.
However, upcoming big films like Spyder, Power Star Pawan Kalyan and Trivikram's combo film maybe affected to the fullest by GST. Whatsoever, it remains to be seen exact impact of GST on cine industry.
Interim, DJ gets credited the first big ticket entertainer to be levying GST.