After Prime Minister Narendra Modi announced changes in the GST rates, various sectors across the country have started recommending lower GST rates on their services and products to the government. Following this, multiplex operators have also requested the government to reduce GST rates on movie tickets. They believe that the current GST on tickets is too high and have proposed increasing the price bracket for the lower GST slab to ₹300 so that consumers can enjoy cheaper tickets. This step could help revive the cinema industry, which has been struggling since the COVID-19 pandemic.
Multiplex Owners Request 5% GST on Tickets Below ₹300
Cinema and multiplex operators have urged the government to bring movie tickets priced below ₹300 under the lowest GST slab of 5% in the revised Goods and Services Tax (GST) framework. According to the Multiplex Association of India (MAI), this move would make movie-watching more affordable for the general public and provide much-needed support to the film exhibition industry, which has been facing financial challenges since the pandemic.
Current GST on Movie Tickets
At present, under the existing GST structure, movie tickets priced above ₹100 attract 18% GST, while those priced at ₹100 or less fall under the 12% GST slab. MAI President Kamal Gianchandani stated that they have proposed increasing the ₹100 price bracket to ₹300. As per their suggestion, movie tickets priced up to ₹300 should be taxed at 5%, while those above ₹300 should continue to attract 18% GST.
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How Much Consumers Can Save
Gianchandani explained that the current ₹100 price bracket is outdated and shared that the matter has been discussed with both the Finance Ministry and the Information & Broadcasting Ministry, but no revisions have been made in the past seven and a half years. He added that increasing the slab to ₹300 would make cinema tickets more affordable. The average movie ticket price in India is around ₹170–₹175. If the government accepts MAI’s recommendation and applies a 5% GST rate to tickets below ₹300, consumers could save at least ₹20–₹25 on an average ticket.
No Input Tax Credit on Food and Beverages
MAI represents over 9,000 cinema screens across the country, including 4,000 multiplex screens and 5,000 single screens. The organisation argues that the cinema exhibition sector has a strong case for GST rationalisation. Currently, food and beverages sold inside cinema halls are considered “restaurant services without Input Tax Credit (ITC),” which blocks credit on inputs like raw materials, packaging, utilities, and services, adding to operational costs.