 "PVR moves Allahabad High Court over issue of entertainment tax in GST")
The PVR group has moved the Allahabad High Court, and its Lucknow bench, over the issue of subsuming entertainment tax into the goods and services tax (GST).
The HC has sent a notice to the state government, asking it to explain its scheme of entertainment tax.
The PVR group has said that the Uttar Pradesh government promised to allow multiplexes and cine malls retain a portion of entertainment tax for five years, on the basis of investments they make, but that was broken after the tax was subsumed into GST.
“We have challenged the subsuming of entertainment tax into GST to the extent that the corresponding benefit of retention of tax is not granted in the GST regime,” Abhishek Rastogi, the counsel of PVR group, told Business Standard.
The firm has challenged the new tax on the principle of promissory estoppels, which is a legal principle that says a promise is enforceable by law even if made without formal consideration.
The PVR group has said that the Uttar Pradesh government promised to allow multiplexes and cine malls retain a portion of entertainment tax for five years, on the basis of investments they make, but that was broken after the tax was subsumed into GST.
“We have challenged the subsuming of entertainment tax into GST to the extent that the corresponding benefit of retention of tax is not granted in the GST regime,” Abhishek Rastogi, the counsel of PVR group, told Business Standard.
The firm has challenged the new tax on the principle of promissory estoppels, which is a legal principle that says a promise is enforceable by law even if made without formal consideration.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%