Office of the
Commissioner of State Tax,
Maharashtra State, 8th Floor,
GST Bhavan, Mazgaon,
Mumbai-400 010.

TRADE CIRCULAR

No. JC (HQ)-1/GST/2020/Movies/ADM-8 dated 6th February 2020.

Trade Circular No. 01T of 2020.

To,

………………..

………………..

Subject : Reimbursement of SGST applicable on tickets of movies

Ref : Various GRs issued by Government of Maharashtra from time to time to reimburse the component of SGST to the registered theatre

Sir/Gentlemen/Madam,

1. Government of Maharashtra has issued GRs 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” and “Mision Mangal” for the specified periods. Accordingly trade circulars 43T of 2019 dated 7th August 2019 and 48T of 2019 dated 13th Sept 2019 were issued in this regard.

The Government of Maharashtra has now issued GRs regarding reimbursement of SGST in case of movies “Panipat” and “Tanhaji: The Unsung Warrior”. In view of the above, the present circular is issued for instructions regarding the procedures. However, it is made clear that this is a 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 (www.maharashtra.gov.in) and Department of Goods and Services Tax (www.mahagst.gov.in).

2. 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 Maharashtra Goods and Services Tax Act, 2017. 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.

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.

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

3. The registered theatre shall pay the tax, SGST as well as CGST, in a regular mariner. 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.

4. Every registered theatre which is going to avail the benefit of the scheme as envisaged by the GR shall ommunicate the details as given in Annexure I through email on mail id ahafilmincentives@mahagst.gov.in within seven days from the publication of GR issued by the Government of Maharashtra or within seven days from the date on which the registered theatre started passing the benefit of the scheme to the consumer, whichever is later. Registered theatre which fails to communicate the same within the prescribed time limit will not be eligible to claim the benefit of the scheme.

5. However, in case of movies “Tanhaji: The Unsung Warrior” and “Panipat”, GRs have been already issued. Hence, only in case of these two movies, every registered theatre which is going to avail or has already availed the benefit of the scheme as envisaged by the GRs shall communicate the details as given in Annexure I through email on mail id mahafilmincentives@mahagst.gov.in within seven days from the publication of this circular or within seven days from the date on which the registered theatre started passing on the benefit of the scheme to the consumer, whichever is later. Registered theatre which fails to communicate the same within the prescribed time limit will not be eligible to claim the benefit of the scheme.

6. 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.

7. Mechanism for refund of SGST component paid by registered theatres-

After filing the return under section 39 of MGST Act, 2017, 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 II 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.

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.

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.

Yours faithfully,
(SANJEEV KUMAR)
Commissioner of State Tax,
Maharashtra State, Mumbai.

No. JC (HQ)-1/GST/2020/Movies/ADM-8 dated 6th February 2020.

Trade Circular No. 01T of 2020.

Copy forwarded to the Joint Commissioner of State Tax (Mahavikas) with a request to upload this Trade Circular on the Departments Web-site.

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.

(Shriam H. Umale)
Joint Commissioner of State Tax-HQ-1,
Maharashtra State.

Annexure-I

To,

The Commissioner of State Tax,
Department of Goods and Services Tax,
Maharashtra State, Mumbai.

I wish to avail the benefit of the scheme as published in GR No-___________________________________  dt ______________________  in case of movie _____________ . I have gone through the terms and conditions of the GR. I also have gone through the trade circular _T2020 dt -2020 in this regard. I am submitting the required details as under-

1. GSTIN
2. Legal Name
3. Trade Name
4. Address of Place of Business
5. Pincode
6. Contact details (Phone No)
7. Jurisdictional Tax officer code
8. No of Additional POB (Theatres)
9. Theatrewise details of the date from which benefit of the scheme is passed on to consumer Theatre location Date
2. Whether the display board as per para (5) of Trade circular is displayed

Name-

Designation/Status

ANNEXURE II

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 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

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