Mahesh Babu-Owned AMB Cinemas Tops ₹1.7 Crore GST Profiteering Recovery
HYDERABAD: Actor Mahesh Babu-owned AMB Cinemas LLP must deposit ₹1.1 crore after the Goods and Services Tax Appellate Tribunal (GSTAT) found that it retained the benefit of a GST rate cut instead of passing it on to moviegoers.
The GSTAT’s Anti-Profiteering Division also ordered five other cinema theatres in Telangana to deposit money. Together, the six theatres must deposit nearly ₹1.7 crore into the Central and Telangana Consumer Welfare Funds.
The tribunal issued its latest order on June 11, 2026. It directed Vishwanath Cinema Hall 70MM in Hydernagar to deposit ₹9 lakh.
The other theatres include Jyothi Theatre (₹19.8 lakh), Brahmaramba Cinema (₹11.8 lakh), ASR Cinema LLP (₹9.6 lakh) and Kumar 70MM (₹2.5 lakh).
Theatres Kept GST Benefit
The tribunal said the theatres violated Section 171 of the Central Goods and Services Tax Act.
The GST rate fell on January 1, 2019. It dropped from 18% to 12% for tickets priced up to ₹100. It also fell from 28% to 18% for tickets priced above ₹100.
Instead of lowering ticket prices, the theatres increased the base price. They kept the overall ticket price almost unchanged. As a result, they retained the tax benefit. Consumers did not receive the benefit of the GST cut.
AMB Cinemas Failed to Convince Tribunal
The tribunal calculated the profiteered amount in AMB Cinemas’ case at ₹1.1 crore. It adjusted the amount that the company had voluntarily deposited earlier.
AMB Cinemas said it had judicial permission to increase ticket prices. It also cited higher operating costs.
The tribunal rejected both arguments. It said state permissions cannot override the anti-profiteering provisions of the Central Goods and Services Tax Act.
Other Theatres Face Similar Orders
Jyothi Theatre in Sangareddy said its ticket prices stayed within the state’s approved limits. It also argued that maintenance charges should not attract GST.
The tribunal rejected both claims. It directed the theatre to deposit ₹19.8 lakh.
Bhavya Construction Pvt Ltd operates Brahmaramba Cinema Hall 70MM. The company increased the base prices of Maharaja Circle and Dress Circle tickets. The tribunal ordered it to deposit ₹11.8 lakh.
Vishwanath Cinema Hall 70MM must deposit ₹9 lakh. ASR Cinema LLP must deposit ₹9.6 lakh.
Kumar 70MM admitted that it did not reduce the prices of ₹80, ₹60 and ₹30 tickets after the GST cut. The tribunal ordered it to deposit ₹2.5 lakh.
Interest Ordered, No Penalties
The tribunal also ordered Vishwanath Cinema Hall, ASR Cinema LLP and Kumar 70MM to pay 18% interest from June 28, 2019. It did not order interest in the Brahmaramba Cinema case.
The tribunal asked most theatres to split the money equally between the Central Consumer Welfare Fund and the Telangana Consumer Welfare Fund.
The tribunal did not impose penalties. The violations occurred before January 1, 2020. The penalty provisions came into force only after that date.
