New Delhi, May 22 (PTI) Shares of multiplex operators Also Read - Refusal to Compensate States on GST is Nothing Short of Betrayal by Centre, Says Sonia Gandhi at Chief Ministers' Meet

INOX Leisure and PVR fell by up to 4 per cent today after Also Read - 40th GST Council Meeting: Zero Late Fees For Tax Return Filing Between July 2017 & Jan 2020

announcement of GST rates in which they are bracketed in the Also Read - GST Council May Provide Relief to Trade on Issue of Late Fee

highest category.

INOX Leisure shares went down by 3.91 per cent to end at

Rs 276.60 and PVR fell by 2.32 per cent to close at Rs

1,483.90 on BSE.

PVR tumbled 7.83 per cent to Rs 1,400.10 in intra-day

session and INOX Leisure fell by 4.39 per cent to Rs 275.20.

“These companies may be slightly unhappy that they have

been bracketed in the highest category along with gambling and

betting activities. That almost looks akin to imposing a “Sin

Tax” on movies. However, multiplexes will benefit from

subsuming of plethora of state and local taxes into one single

tax and also from input credits,” said Vaibhav Agrawal, Head

of Research and ARQ, Angel Broking.

Entertainment tax will be merged with service tax under

the GST and a composite 28 per cent levy charged on cinema

services as well as gambling and betting at race course.

While the rate proposed for cinema halls is lower than 40

to 55 per cent currently, it may not result in a reduction in

tariffs on cinema tickets as states continue to hold right to

levy local charges on them.

The GST Council finalised four tax rates of 5, 12, 18 and

28 per cent for services, including telecom, insurance, hotels

and restaurants, under the biggest tax reform since

Independence.

This is published unedited from the PTI feed.