It’s heartening to note that various state governments have granted The Kashmir Files exemption from payment of SGST. Since the SGST component of the total GST is only 9% (the other 9% being CGST), it would have been ideal if the Central government had also passed an order to exempt the film from payment of CGST. In such an eventuality, the ticket rates would reduce by 18% in those states where the governments have exempted the film from SGST too. In other states, the ticket price would reduce by 9% (since only the CGST component would not be payable).
Even in those states where the film does not have to pay SGST, the refund of the SGST component from the various state governments takes many months to come from them. For the uninitiated, it must be mentioned here that although cinemas do not collect the amount of SGST on a ticket from the patron, they are required to pay the SGST on all tickets sold, and then claim refund from the state government. This means, granting tax-exemption is only half the story. The other half (of refund of the SGST) also needs to be looked into because undue delay in refunding the amount of SGST almost negates the effect of the exemption in the hands of producers/distributors.