Mumbai: With several award functions coming up over the next 2 months, there was a lot of confusion in Bollywood over the GST slab applicable on the purchase of awards. Finance ministry has now cleared all the confusion by stating that an award is a luxury item and will attract 28% GST. By including Bollywood awards under GST, the government aims to bring some much needed transparency in the process and also boost government’s revenue by tapping into this huge industry.
Speaking to the press, a senior Finance Ministry official said ,”We are just trying to bring as many industries to the formal sector as possible and including Bollywood awards is just another step in that direction. There were several queries from people working in Bollywood asking us whether they will have to pay GST while purchasing an award so we decided to end the confusion by announcing the slab publicly. Government hopes to collect 100 Crores in GST by the end of the current award season.”
However this decision by the government has not gone down well in the industry. Speaking on the condition of anonymity, a newcomer in Bollywood said ,”It is really sad that they are putting Bollywood awards in the luxury category when we all know it is a necessity. Without an award within first 2 years of your Bollywood career, nobody cares for you. This is not the 80s or 90s where stars could survive without awards, our careers depend on getting regular awards. Hamare to baap dada bhi nahin the films me jo wahi kaam dilwaate rahein.”
Meanwhile, government is still wondering how to collect GST when awards are given in exchange of a dance performance.