The Uttar Pradesh government has announced concessions to prompt the reopening of single-screen cinemas which have shut down over the years. It will refund the GST of 28% for an initial period of three years. For two years thereafter, GST would be charged at 25% of the normal rate.
Ramdayal Rawat, district entertainment officer, Agra, said, “Government records show that 552 single-screen cinemas in U.P. are in bad shape and many of these have downed their shutters. In order to provide an affordable entertainment for medium-class people and generate revenue for the state, the government has decided to refund the GST to owners who are keen on restarting their businesses.”
According to the government policy, a 100% refund for three years and 75% for the next two years will be offered to those cinemas which would require complete reconstruction to become functional again. Those cinemas where only internal remodelling is necessary, a 75% refund would be given for the first three years, and 50% for two years after that. The cinema halls which can restart operations without repair or reconstruction work can avail of a 50% tax benefit for three years.