Hyderabad: The Goods and Services Tax Appellate Tribunal’s (GSTAT) Anti-Profiteering Division passed orders in six Telangana cinema anti-profiteering cases in 2026, directing the theatres to deposit a combined ₹1.7 crore into the Central and Telangana Consumer Welfare Funds.In its latest order on June 11, the tribunal directed Vishwanath Cinema Hall 70MM in Hydernagar to deposit ₹9 lakh. The other respondents were actor Mahesh Babu-owned AMB Cinemas LLP, ordered to pay ₹1.1 crore; Jyothi Theatre, ₹19.8 lakh; Brahmaramba Cinema, ₹11.8 lakh; ASR Cinema LLP, ₹9.6 lakh; and Kumar 70MM, ₹2.5 lakh.The tribunal found that the cinemas violated Section 171 of the Central Goods and Services Tax Act, by increasing their base ticket prices instead of passing on GST rate reductions that took effect on Jan 1, 2019. The tax was reduced from 18% to 12% for tickets priced up to ₹100 and from 28% to 18% for tickets costing more than ₹100.AMB Cinemas among violatorsAccording to the orders, the theatres maintained the earlier final, tax-inclusive ticket prices by raising base prices after the tax rates were reduced. The tribunal held that this resulted in the tax benefit being retained by the cinemas instead of being passed on to consumers through a commensurate reduction in ticket prices.In the AMB Cinemas case, the tribunal quantified the profiteered amount at ₹1.1 crore after adjusting previous voluntary deposits. It rejected the cinema’s contention that judicial permission to increase ticket prices and its overhead costs justified the revision, holding that state-level regulatory permissions did not override the anti-profiteering requirement under the CGST Act.Jyothi Theatre, located in Sangareddy district, was directed to deposit ₹19.8 lakh. The tribunal rejected its defence that ticket prices remained within the maximum limits prescribed by the state and that tax-free maintenance charges should be excluded from the GST calculation.Bhavya Construction Pvt Ltd, which operates Brahmaramba Cinema Hall 70MM, was found to have increased base prices in categories including Maharaja Circle and Dress Circle. It was ordered to deposit ₹11.8 lakh.Interest ordered in most casesVishwanath Cinema Hall, located on KPHB Main Road in Hydernagar, was ordered to deposit ₹9 lakh with 18% interest from June 28, 2019. ASR Cinema LLP was similarly directed to deposit ₹9.6 lakh with interest from the same date.Kumar 70MM, which admitted that it had not reduced prices for tickets costing ₹80, ₹60 and ₹30, was ordered to deposit ₹2.5 lakh with 18% interest.In most cases, the amounts were ordered to be divided equally between the Central and Telangana Consumer Welfare Funds. The Brahmaramba Cinema order did not direct payment of interest. No penalties were imposed as the violations occurred before the relevant penal provisions came into force on Jan 1, 2020.
