Industry Status Request Is A Long Due For Telugu films, Says Vijayender Reddy

The Telugu film industry has been hoping to receive industry status for over three decades, but the demand has remained unfulfilled, says Vijayender Reddy, president of the Telangana Controllers and Exhibitors Association. 

“The request was first made during the tenure of NTR as Chief Minister in 1983 and was later followed up with the late Union Minister Sushma Swaraj. Unfortunately, it has not yielded any result,” Vijayender Reddy said. He added that the Central government has withheld industry status as cinema does not involve the manufacture of physical products like pins or utensils and therefore does not fall under the conventional definition of an industry. 

According to him, industry status would significantly benefit exhibitors, especially by reducing power tariffs for theatres. "Currently, theatres are paying around Rs 9 per unit on a commercial basis. If we are granted industry status, the tariff would come down to nearly Rs 4 per unit. Recognition would also enable us to avail bank loans, subsidies, and other benefits extended to industries,” he explained. 

Meanwhile, Tollywood exhibitors have submitted a representation to Union Finance Minister Nirmala Sitharaman seeking a reduction in GST on movie ticket prices. “We are hoping for a GST reduction in this budget and are keeping our fingers crossed,” he said. 

Explaining the issue, Vijayender Reddy noted that the existing GST rate is 18 per cent per ticket. However, state governments have disallowed 18 per cent GST on tickets priced below Rs 100. “Hundreds of theatres in districts across Telangana and Andhra Pradesh are suffering huge losses. For tickets below Rs 100, we collect only 5 per cent GST from viewers, but we are forced to pay 18 per cent GST to distributors,” he said. 

He cited an example: “If a film collects Rs 1 lakh, we collect only Rs 5,000 as GST from the audience. But when we pay distributors Rs 1,18,000, we end up losing around Rs 13,000 per week. This is extremely unfortunate.”

He pointed out that theatres within municipal corporation limits collect 18 per cent GST from viewers and pay the same to distributors, whereas district theatre owners are placed at a disadvantage. “We are requesting both the Central and state governments to introduce a uniform GST rate for all tickets instead of different slabs,” he said.

With around 300 single-screen theatres in Telangana already struggling due to declining patronage, GST rationalisation could provide much-needed relief. “Audience turnout has become highly erratic. One day we see housefull shows, and on many other days there are not even six viewers per show, forcing us to cancel screenings,” said another leading distributor.