Tollywood Superstar Theatre booked for GST Fraud

Vastavam web: Now once again Telugu Superstar Mahesh Babu received GST shock. A couple of months ago, the GST Commissionerate had blocked Mahesh Babu’s bank accounts over an alleged non-payment of service tax of Rs 18.5 lakhs. Mahesh Bbau questioned GST Commissioner’s decision to seize his two bank accounts without any prior notice. Now it has come under the GST department’s scanner. The GST anti-profiteering wing, Ranga Reddy district, on Tuesday served a showcause notice on AMB Cinemas for violating GST norms, by not reducing the price of tickets despite revised tax rates.

The seven-screen ‘superplex’, operating from Sarath City Capital mall on the Gachibowli-Miyapur road, has come under the scanner for profiteering illegally to the tune of Rs 35 lakh by not transferring benefit of the reduced GST rates onto the consumers, as mandated in a notification that came into effect on January 1, 2019. Starting 1st January, the GST Council had said that tickets worth Rs 100 and above would fall in the 18% tax bracket instead of earlier 28% whereas for tickets less than Rs 100, it would fall in 12% tax bracket instead of earlier 18%. In a raid conducted on the multiplex, the GST anti-evasion team found out that Mahesh Babu’s AMB Cinemas had not reduced the ticket prices even after the central government’s notification.