The PVR group moved the Allahabad High Court over the issue of subsuming entertainment tax into the goods and services tax (GST).
The PVR group argued that the Uttar Pradesh government promised to allow multiplexes and cine malls to retain a portion of entertainment tax for five years, on the basis of investments. But the assurance 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, said.