Hyderabad: GST anti-profiteering wing, Ranga Reddy district, officials on Tuesday served a showcause notice on actor Mahesh Babu’s new theatre AMB (Asian Mahesh Babu) Cinemas, for violating GST norms.
The officials found that the theatre had not reduced the price of tickets, thereby denying the benefit of reduction in tax rates to movie-goers.
The GST Council had reduced the tax on tickets costing more than Rs 100 from 28 per cent to 18 per cent. Where the ticket price was Rs 100 or less, the GST rate was pegged at 12 per cent from 18 per cent earlier. The rates were effective from January 1.
The RR GST Commissionerate anti-profiteering of wing inspected various multiplexes within the twin cities and collected sample tickets from a few. It was found that AMB Cinemas was continuing to charge at the old GST rates, following which a showcause notice was issued.
The sleuths were authorised to book a case under Section 171 of the CGST Act, 2017.