Why are the movie theatres across Tamil Nadu shut? Is the entertainment tax not part of the Goods and Services Tax (GST) and therefore, rates specified? Why are the theatre owners then complaining of double taxation?

Some of the answers can be found in the GST council’s decisions. While the entertainment tax is part of the GST with two specific rates – 18 and 28 per cent – there is a provision which says “local bodies are free to levy their charges and there is no cap on the quantum of additional levy,” says Pratik Jain, partner and leader, PwC.