On Friday, the government made mandatory for the multiplexes to shift to the electronic ticketing system to check goods and services taxation evasion. The move also came to bring down the curtain on the coloured tickets that few cinema halls are still using. The government official said, “Registered multiplexes shall be required to issue a tax invoice electronically and for this purpose, the electronic ticket issued by them shall be deemed to be a tax.”

The cinema giant, PVR has already implemented e-ticketing. Tax consulted said, “The move is more symbolic with many viewing it as a precursor to extending the mandate to single-screen theatres in the coming months. With the GST council decision, multiplexes have now become the test case for electronic invoices for Business to Consumer transactions so far.

MS Mani, Deloitte India partner said, “The proposed e-voicing by multiplexes possibly marks the beginning of a mandatory e-voicing system for B2C transactions. This could possibly be extended in future to other B2C transactions in order to have a complete e-trail of the value chain.”

Tax experts see B2C transactions as a leakage point since the cash flow are often not recorded resulting in tax evasion and generating black money.

Pratik Jain, partner and leader of the indirect tax practice at PwC India said, “While this system could initially be implemented for the B2B segment only, but with e-ticketing for multi-screen cinema halls, a similar mechanism is also proposed for the B2C segment. If this experiment turns out to be successful, one could see this mechanism getting extended to other B2C segments as well.”