GST 2.0: Movie Tickets Are Getting Cheaper, But Not All

The Goods and Services Tax Council, chaired by Finance Minister Nirmala Sitharaman, on Wednesday shared a much-needed respite for movie-goers. At its 56th meeting, the Council approved a reduction in tax rates for cinema tickets priced below Rs 100.

Under the new two-tier tax structure, the GST on such tickets will be reduced from 12% to 5%, offering relief to audiences, especially those frequenting single-screen theatres in smaller towns and cities. The revised rates will come into effect from Sept. 22.

This move is aimed at making cinema more affordable for audiences, support theatre owners, and boost infrastructure development in smaller towns and cities. It is expected to benefit the common man who often opts for affordable shows. While the reduction may appear small, it can significantly benefit families who regularly visit cinemas for entertainment.

Tickets priced above Rs 100 will continue to attract 18% GST, with no change in their existing rates. The multiplex audiences, who usually pay between Rs 150 and Rs 400 per ticket, will see no respite from high prices.

Earlier, the Multiplex Association of India had urged the government to extend the 5% tax slab to tickets priced up to Rs 300.

Though, cinema has received some relief, sporting events such as the Indian Premier League have faced a major tax hike. GST on tickets for IPL and other premium sporting events has surged from 28% to 40%.