Bhubaneswar, June 30: Odia films will no longer enjoy exemption of entertainment tax with the Centre rolling out the Goods and Services Tax (GST) from July 1.

While theatre tickets have been placed in the highest GST tax slab at 28 per cent, the government is making concessions for tickets priced below Rs 100 and taxing them at 18 per cent.

Entertainment tax was a state subject before the rolling out of the GST system. Under the previous system, non-Odia films released in the state were subject to 25 per cent tax, while Odia films enjoyed full tax benefits.

"The 1999 super cyclone was a big blow for the industry. So, the decision to make Odia films tax free was taken following a lot of discussions with the state government. Now, it feels as if we are back to square one," said veteran film-maker Basant Sahu.

Prices for Odia film tickets vary from Rs 80 to Rs 120 with the producer and theatre owners sharing the income on a 50-50 or 60-40 ratio.

Producers feel GST would affect income sharing. "The income from Odia films is low on account of the poor turnout. It is difficult to raise ticket prices at this stage. For low-profit cinema industries such as ours, GST would be a harsh blow," said film-maker and producer Susant Mani.

Independent film-makers believe that the implementation of GST would affect low-budget films.

"This is another blow. The only way out is independent distribution in global platforms. Making good films will not help anymore, we have to be creative in distribution as well," said film-maker Amartya Bhattacharyya , who has made a mark as independent film-maker with Niloye Jokhon, Boba Mukhosh and Capital I.

The film producers' association is also in a fix.

"We will wait and watch how things shape up in the next few days. If it goes haywire, we will sit and discuss it with the state government and take necessary steps," said association member Pradyumna Lenka.

Film distributors are also meeting shortly to decide on the future course of action regarding the implementation of GST in the entertainment industry.

Film distributor Akash Nayak said: "I will attend a distributors' meeting in Hyderabad shortly. Even the southern film industries believe that the implementation of GST is a threat. The new tax regime may simply wipe us out."