Multiplexes, theme parks in Maharashtra yet to get entertainment tax refund

Mumbai: Theme parks and multiplexes in Maharashtra may move court to get the diversion charge discount that was guaranteed as impetus in the state’s travel industry strategy however was later subsumed under the merchandise and ventures charge (GST).

These organizations haven’t got charge discount in spite of an elevated level board — framed by the request for the Bombay High Court — dispensing 110 crore for expedient handling of the awards.

With not a single reprieve to be found, these organizations are thinking about moving court for help, an industry leader told ET, mentioning not to be named.

In December 2018, the high court had guided the Maharashtra government to shape a significant level council to investigate the issue identified with an amusement charge waiver reached out to Adlabs Entertainment.

“With no respite in sight, these companies are considering moving court for relief”


p class=”author”>— Seeking Legal Relief

“The arguments as of now are with respect to obtaining some portion of the refund due in a timely manner. However, subsequently the court will have to determine the quantum and the periodicity for which this benefit should continue,” said Abhishek A Rastogi, accomplice at Khaitan & Co, who is contending petitions on authentic anticipation.

He stated, “When entertainment tax is subsumed in GST, the resultant taxes are an aggregate of federal and state taxes and, hence, even the central GST portion of the taxes should be considered for refund, or the periodicity of the exemption period should be extended.”

Under the state’s travel industry strategy, the state government had postponed off diversion charge — at that point at 15% — so as to boost amusement parks and multiplexes. Nonetheless, after GST was presented in July 2017, the diversion charge was subsumed and an 18% GST was exacted.

Numerous organizations recorded petitions in the court looking for alleviation, contending that the adjustment in the assessment system had made the business unviable.

Afterward, the high court passed a request to shape an elevated level board to decide the approach for broadening the diversion tax breaks.