The Maharashtra Goods and Services Tax ( GST ) Department, through Trade Circular No. 01T of 2024 dated January 29, 2024, has outlined a procedure for the submission and processing of refund applications concerning the State Goods and Services Tax ( SGST ) reimbursement component for registered theaters related to the screening of the movie “Satyashodhak.”
The government of Maharashtra has issued Government Resolutions ( GR ) specifying the reimbursement of the State GST component in the ticket prices for movies such as “Super 30,” “Mission Mangal,” “Panipat,” and “Tanhaji: The Unsung Warrior.” These resolutions, namely Trade Circulars 43T of 2019 ( dated 7th August 2019 ), 48T of 2019 (dated 13th September 2019 ), and Master Trade Circular No. IT of 2020 ( dated 6th February 2020 ), have been previously issued.
In response to the SGST reimbursement for the movie “Satyashodhak,” the Government of Maharashtra has now issued a revised GR, prompting the need for modifications to the procedure outlined in the Master Trade Circular. This update, exercised under the powers of section 168 of the Maharashtra Goods and Services Tax Act, 2017 ( MGST Act ), establishes a revised procedure for the submission and processing of refund applications, superseding the previous Trade Circular No. 1T of 2020.
It’s important to note that this revised Master Circular applies to all future GRs issued by the Government of Maharashtra. While timelines specified in individual GRs must be followed, the general instructions in the Master Circular are universally applicable without further directives from this office. The issued GRs will be made available on the official websites of the Government of Maharashtra ( शासन निर्णय – महाराष्ट्र शासनाचे अधिकृत संकेतस्थळ, भारत ) and the Department of Goods and Services Tax ( www.mahagst.gov.in ).
Registered theaters, after including CGST and SGST in the ticket price, must reduce the ticket price by an amount equal to SGST to pass on the benefit to the consumer.
A “registered theatre” refers to a theater registered under the MGST Act. The registered theatre must prominently display the SGST, CGST components, and the discount amount for reimbursement claimed from the Government of Maharashtra in the movie ticket price.
Example:
– Basic ticket price: Rs 200/-
– Add CGST: Rs 18/-
– Add SGST: Rs 18/-
– Total: Rs 236/-
– Less discount (reimbursement): Rs 18/-
– Total price from consumer: Rs 218/-
Registered theaters must pay both SGST and CGST regularly. If the full amount has been recovered from the consumer without reducing the SGST amount, no refund will be granted. To claim SGST refund, registered theaters must pass on the benefit to the consumer.
Registered theaters benefiting from this scheme must display a board in their premises, notifying that the Government of Maharashtra is reimbursing the SGST component, leading to a reduced ticket cost. Jurisdictional officers may conduct visits to verify compliance.
Refund Mechanism:
– After filing the return under section 39 of MGST Act, the registered theatre applies to the State jurisdictional officer for SGST reimbursement within thirty days.
– If under the Central authority, the application is made to the concerned divisional Joint Commissioner of State Tax.
– Books of accounts must be produced for verification, ensuring compliance with Government Resolution conditions.
– Refunds will be disbursed within 30 days from the application date.
This Trade Circular serves as clarification, and any implementation difficulties should be communicated to the Commissioner of State Tax, Maharashtra. Access the complete Trade Circular Here.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
