A couple of months back, Superstar Mahesh Babu ventured into multiplex business and launched his first property in Kondapur and named it as AMB Cinemas. Popular multiplex chain company Asain Cinemas has partnered with Mahesh in forming the AMB Cinemas.
Mahesh has received a show cause notice the other day from Ranga Reddy district GST Commissionerate anti-profiteering wing for violating GST norms. As AMB Cinemas has been continuing to charge old GST rate on tickets, even though the taxes on tickets has been reduced on January 1st by GST council.
The GST council reduced taxes to 18% from 28% for the tickets priced above Rs. 100 and 12% from 18% for the tickets priced below Rs. 100. As per the reports, AMB cinemas has bagged an amount of Rs. 35 lakhs by not changing the GST rate. GST commissionerate has ordered the management to return that amount to the consumer welfare fund.
