Mahesh Babu's multiplex served with notice for violating GST norms

Mahesh Babu, a well known face in Tollywood, has come under the scanner for allegedly violating GST norms. His new theatre AMB Cinemas at Kondapur did not reduce the price of tickets despite revised tax rates. Thus they were served a notice on Tuesday from the Ranga Reddy district GST Commissionerate anti-profiteering wing in Telangana.

If media reports are to be believed then the notice came after officials of the anti-profiteering wing inspected several multiplexes and collected sample tickets. They however aren't the first multiplexes to not charge the latest GST rates. Many other single-screen and multiplexes in Hyderabad and Secunderabad indulged in GST violations.

Starting January 1, the GST Council had said that tickets worth Rs 100 and above would fall in the 18% tax bracket instead of the earlier 28% while for tickets less than Rs 100, it would fall in the 12% tax bracket instead of the earlier 18%. By charging tickets under old GST rates, officials said that the management of AMB Cinemas denied the benefit of tax reduction to the common public and added that action could taken under relevant sections of the CGST Act, 2017.

Asian Mahesh Babu Cinemas, abbreviated for AMB Cinemas, was the Tollywood actor's first venture into film exhibition business. The theatre was inaugurated in December last year. AMB cinemas boasts of not only having the latest technology and equipment, but also super comfortable lounges.