This is the best Diwali news, in a landmark development, the Ministry of Finance has provided much-needed clarity on the Goods and Services Tax (GST) applicable to film distribution prior to October 2021, offering substantial relief to production houses, distributors, and other stakeholders across the Indian film industry.
This decision brings to a close, years of uncertainty in matters of show-cause notices with regards to GST.
The Guild, with support from EY, led several rounds of dialogue with key government officials at both the Central and State levels. The matter was brought to the attention of the GST Council, and as a result of sustained advocacy, a positive clarification was issued by the Ministry of Finance following the recent GST Council meeting.
The Guild believes this GST clarification will positively impact the production and distribution ecosystem by alleviating the financial burden that arose due to uncertainty over past tax liabilities. This resolution ensures the continued growth and sustainability of the Indian film industry, fostering creativity, investment, and collaboration.