The Commissioner of State Tax, Maharashtra, has issued a trade circular (No. 01T of 2024) providing guidelines for the reimbursement of State Goods and Services Tax (SGST) applicable on movie tickets. This comes in response to the Government Resolutions dated 11th January 2024, specifically addressing the movie “Satyashodhak.”
1. Background and GRs: The circular references Government Resolutions issued in 2024, directing reimbursement of SGST to registered theaters for specific movies. It highlights the need for modification to the existing procedure outlined in Trade Circular No. 1T of 2020.
2. Procedure Modification: The circular exercises powers conferred by the Maharashtra Goods and Services Tax Act, 2017, laying down a revised procedure for submission and processing of refund applications. This revised master circular will apply to all future GRs issued by the government.
3. Consumer Benefit: Registered theaters are required to prominently indicate the SGST component in ticket prices and reduce the ticket price by the amount equal to SGST. A detailed example is provided to illustrate how this should be implemented, ensuring transparency in passing on benefits to consumers.
4. Conditions for Refund: To claim a refund of SGST, registered theaters must pay both SGST and CGST in a regular manner. The application for reimbursement must be made within thirty days from filing the return, accompanied by the necessary documents. The refund will be disbursed within 30 days from the date of the application.
5. Display Requirement: The circular mandates registered theaters to display a board informing consumers about the reimbursement of SGST and the corresponding reduction in ticket prices. Jurisdictional officers may verify compliance during visits to the theaters.
Conclusion: The trade circular serves as a clarificatory guide, addressing the reimbursement process for SGST on movie tickets in Maharashtra. The outlined procedure aims to ensure that the benefit reaches the consumers transparently, with mechanisms in place for verification and timely disbursement of refunds.
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Office of the
Commissioner of State Tax,
Maharashtra State, 8th Floor,
GST Bhavan, Mazgaon,
Mumbai-400 010.
TRADE CIRCULAR
No. JC (HQ)-5/SGST-reimbursement/Movies/2024/B- 12
Trade Circular No. 01T of 2024.
date-29/1/2024
Subject: Reimbursement of SGST applicable on tickets of movies.
Ref: 1. Government Resolutions dated 11th January 2024 issued by the Government of Maharashtra to reimburse the SGST component to the registered theatre with respect to Satyashodhak movie.
2. Trade Circular No. 1T of 2020 dated 6th February 2020.
Government of Maharashtra has issued Government Resolutions (GR) regarding reimbursement, to the registered theatres, of the component of State Goods and Services Tax (SGST) prominently indicated in the ticket which was issued for the supply of service by way of admission to the exhibition of movies “Super 30”, “Mission Mangal”, “Panipat” and “Tanhaji: The Unsung Warrior” for the specified periods. Accordingly, Trade Circulars 43T of 2019 dated 7th August 2019, 48T of 2019 dated 13th Sept 2019 and master Trade Circular No. 1 T of 2020 dated 6th February 2020 were issued in this regard.
2. The Government of Maharashtra has now issued GR regarding reimbursement of SGST in case of movies “Satyashodhak”. On an examination of the same, it is felt that the procedure prescribed through master Trade Circular needs some modification. Hence, in exercise of powers conferred by section 168 of the Maharashtra Goods and Services Tax Act, 2017 (hereinafter referred as the MGST Act), hereby lays down the procedure for submission and processing of refund applications in supersession of earlier Trade Circular No. 1T of 2020.
It is made clear that this is a revised master circular which shall be applicable to all such GRs, if any, whenever they are issued by the Government of Maharashtra. Needless to say, the timelines given in the individual GRs be followed but broad instructions given in the master circular be applicable to all such cases without any further instructions from this office. The GRs as and when issued by the Government of Maharashtra will be put on the official website of Government of Maharashtra (https://gr.maharashtra.gov.in//1145/Government-Resolutions) and Department of Goods and Services Tax
3. Registered theatre after indicating CGST and SGST in the price of ticket shall reduce the ticket price by amount equal to SGST in order to pass on the benefit to the consumer.
“Registered theatre” means theatre registered under the MGST Act. Registered theatre shall prominently indicate the component of SGST, CGST and amount of discount on account of reimbursement to be claimed from Government of Maharashtra in the ticket price of movie.
3.1 Example-
Suppose basic ticket price is Rs 200/-. SGST applicable is Rs 18/- and CGST applicable is Rs 18/-. Total price comes to Rs 236/-. Here, Government is going to reimburse the amount equal to SGST payable which is at Rs 18/-. The theatre shall reduce this amount of SGST to be reimbursed by the State Government at Rs 18/- from Rs 236/- and collect balance amount of Rs 218/- from consumer. The theatre shall prominently indicate this reimbursement amount of Rs 18/- which is equal to SGST in the ticket.
Table: Tabular presentation of above example
| Basic ticket price | 200 |
| Add- CGST | 18 |
| Add- SGST | 18 |
| Total= | 236 |
| Less- Discount on account of reimbursement to be claimed from Govt. of Maharashtra | 18 |
| Total price receivable from consumer | 218 |
4. The registered theatre shall pay the tax, SGST as well as CGST, in a regular manner. If the registered theatre has recovered full amount from consumer without reducing the amount equal to SGST, then no refund of such amount will be granted to the theatre. In order to claim refund of SGST paid, the registered theatre is required to pass on the benefit of this scheme to the consumer.
5. Registered theatres which are going to take benefit of this scheme shall prominently display in their theatre premises a board to the effect that Government of Maharashtra is going to reimburse the component of SGST to the registered theatre and cost of ticket is reduced accordingly. Jurisdictional officer may visit the theatre to verify whether theatre is passing on this benefit to consumer or not.
6. Mechanism for refund of SGST component paid by registered theatres-
6.1 After filing the return under section 39 of MGST Act, registered theatre shall make an application to State jurisdictional officer for reimbursement of SGST component which he has paid in the return period in Annexure-I within thirty days from the filing of return and payment of tax for the said period. If registered theatre is under jurisdiction of Central authority, then he will apply to concerned divisional Joint Commissioner of State Tax or to the locational administrative head of the office.
6.2 Registered theatre shall produce the books of accounts for the verification before jurisdictional officer for ascertaining refund claim as and when required. Apart from verification of books of accounts, jurisdictional officer will also verify whether registered theatre has fulfilled all the conditions prescribed in the Government Resolution. After due verification, refund will be disbursed to the registered theatre. The refund shall be disbursed within 30 days from the date of the application.
7. This Trade Circular is clarificatory in nature. Difficulty if any, in the implementation of this Circular may be brought to the notice of the office of the Commissioner of State Tax, Maharashtra.
(Asheesh Sharma)
Commissioner of State Tax,
Maharashtra State, Mumbai.
No. JC (HQ)-5/SGST-reimbursement/Movies/2024/B- 12
Trade Circular No. 01T of 2024.
Date – 29/01/2024.
Copy forwarded to the Joint Commissioner of State Tax (Mahavikas) with a request to upload this Trade Circular on the Departments’ Website.
Copy submitted with compliments to,-
(a) The Deputy Secretary, Finance Department, Mantralaya, Mumbai-21 for information.
(b) Accounts Officer, Sales Tax Revenue Audit, Mumbai and Nagpur.
(Vishakha Borse)
Joint Commissioner of State Tax,
HQ-5, Maharashtra State.
ANNEXURE-I
Format of Application for Refund of an amount equal to SGST component by registered theatre in case of movie
(See GR No ……………………………………………………)
| 1. | GSTIN | |||||
| 2. | Legal Name | |||||
| 3. | Trade Name, if any | |||||
| 4. | Address: | |||||
| 5. | Tax period | |||||
| Rate of Ticket | No of tickets sold | Net Taxable Turnover | CGST | SGST | ||
| 6. | Details of total Supplies effected under SAC 9996 | |||||
| 7. | Details in case of tickets of movie | |||||
| 8. | Out of column 7, details in case of tickets of movie ———– wherein benefit is passed on to the consumer | |||||
| 9. | Amount of Refund claimed (Rs.) | |||||
| 10. | Bank details | Bank Name-
Branch- IFSC- Account Number- |
||||
DECLARATION
I hereby declare that-
(1) I hereby declare that the refund has been claimed only for the invoices (tickets) pertaining to movie——————
(2) I have passed on the benefit of the scheme to the consumers.
Signature
Name-
Designation/Status-
