Since Prime Minister Narendra Modi rolled out updates to the GST system, a bunch of industries nationwide have started asking for tax breaks. Multiplex Association requests the government to change the GST percentage on movie tickets.
The Multiplex operators have jumped on the bandwagon of other industries, asking the government to rethink GST rates on movie tickets since they believe the current rates are way too high and are driving audiences away.
Multiplex Owners request change in GST Rates for Movie Tickets
The Multiplex Association of India (MAI), covering over 9,000 movie screens nationwide, is asking the government to change the GST rates to make going to the movies cheaper for everyone. MAI mentioned that this step will not just make movies cheaper for everyone, but it will also give a much-needed boost to an industry that’s been having a tough time since the Covid-19 pandemic.
The group recommended that tickets costing up to Rs 300 should fall under the lowest 5 percent GST rate, while those over Rs 300 can keep the 18 percent GST.
Right now, if a movie ticket costs more than Rs 100, it gets hit with an 18 percent tax, but tickets under Rs 100 only have a 12 percent GST. MAI suggests making some big changes to this threshold. Kamal Gianchandani, the MAI president, mentioned to the media that we suggest increasing the Rs 100 slab to Rs 300, meaning ticket prices up to Rs 300 should have a 5 percent GST, while anything over Rs 300 should face an 18 percent GST.
Gianchandani mentioned that the Rs 100 limit just doesn’t make sense anymore and highlighted that even after multiple requests to the Finance Ministry and the Ministry of Information and Broadcasting for over seven years, nothing has changed. He said that the Rs 300 slab will make cinema tickets more affordable, he said, adding that it will also infuse confidence in the exhibition sector; the incumbent players need that boost in order to accelerate the growth rate.
The Official Letter from MAI (Multiplex Association of India)
