GST Cuts: Multiplex Ticket Rates to Drop Soon?

Indian Prime Minister Narendra Modi announced a change in the GST framework, and in this context, the Multiplex Association of India began presenting its demands for tax relief. The multiplex operators appealed to the government to rationalise the GST rates on movie tickets, arguing that the current structure is disproportionately high and results in less footfall. In this regard, they delivered a presentation, suggesting lower GST rates of 5% for tickets upto 300 rupees.

The association calls for GST Reduction to 5% for Tickets Below ₹300 in the Upcoming rationalization! Wherever there are Ticket Price Limits, the audiences can potentially benefit from reduced taxes. For instance, the multiplex movie ticket is priced at ₹295, and now it will become ₹262.50 if there is a 5% GST in Hyderabad Plexes.

Indeed, this is an excellent move from the Multiplex association in persuading the government, as it could potentially increase the footfall at the theatres. With inflation eroding the ₹100 threshold since 2018, this could make cinema more affordable and boost screen growth from 2-3% to 10%, according to the FICCI-EY report.

There is an exciting potential for increased foot traffic and a stronger local industry, especially in light of global challenges such as the 100% tariff on foreign films.

Currently, movie tickets priced above Rs 100 are taxed at 18 percent, while those below Rs 100 attract a 12 percent GST. “We are recommending that the Rs 100 slab be raised to Rs 300, so ticket prices till Rs 300 should attract 5 per cent GST, and anything higher than Rs 300 should attract 18 per cent GST,” MAI President Kamal Gianchandani said.