The Logic Behind Making A Film Tax Free!

Written By: Aashish Vashistha, Manshi Singh

March 19, 2022 (New Delhi): With the recent event of “The Kashmir Files” getting Tax Free in many of the Indian states, netizens are confused that what does the tax-free situation means, now let’s understand what does it means, what are its impact and uses. When a movie gets ‘tax free’ it definitely reduces the ticket price of the film which ultimately reduces the burden on the audience’s pocket which enhance the interest of the people regarding watching the film.

The price of the ticket includes two amounts, the first one is the base price which totally depends on the budget of the film. While the second one is the tax price which includes the state GST and the centre GST price which is according to the base price of the ticket. For example, A decision has been taken in 2018 regarding the taxation on the ticket. So, if a film gets “TAX FREE’’ in any state and the price of ticket is 100 public gets the benefit of 9% exemption in the tickets’ price according to the major decision.

Now the question arise here is, Why a film gets tax free? The answer is eloquent which is to support the special ‘subject matter’ which stands in favour of public domain. By this action of making a film ‘tax-free’ in any state, the state government also make the film it’s priority and stands clear to the public and promote the film among larger audiences. Some of the movies which were made tax free before “The Kashmir Files” are, Toilet – Ek Prem katha , Chhapaak , Tanhaji , Dangal and many more in the line.