GST relief for film industry for 2017 to 2021: What it means for distributors
From June 2017 to October 2021, the Ministry of Finance provided insights into the Goods and Services Tax (GST) implications concerning film distribution. In 2021, the ministry increased the GST rates from 12% to 18%.
In Short
Clarity was provided by the Ministry of Finance in relation to GST on the distribution of films.
The industry was impacted by the rise in the GST rate from 12% to 18%.
Movies released from 2017 to 2021 are exempt from the revision.
The Goods and Services Tax (GST) applicable to film distribution before October 2021 has now been clarified by the Ministry of Finance. The industry was greatly concerned about the impact of the revised GST rates in 2021 on production houses, distributors, and stakeholders. The increase in GST from 12% to 18% significantly influenced the budget of films. Nonetheless, the Ministry of Finance has now provided clear guidance on this matter.