The Multiplex Association of India (MAI) is urging the government to revise the Goods and Services Tax (GST) on movie tickets. They propose a lower 5% GST for tickets priced up to Rs 300, arguing that the current 12% and 18% slabs are making cinema unaffordable and hindering screen expansion. The industry believes this change could help India reach 20,000 cinema screens within 7-8 years, creating jobs and boosting the economy.
High taxes under the dual GST structure and limited government support have become major concerns for Indian film exhibitors, who are now pushing for rationalisation in GST on movie tickets. The Multiplex Association of India (MAI) has urged the Centre to consider a simplified tax structure that could accelerate screen growth and make cinema more affordable for the masses.
Multiplex Industry's Proposal
The MAI has suggested that movie tickets priced up to Rs 300 should attract just 5% GST, w
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FAQ :
The MAI proposes that movie tickets priced up to Rs 300 should attract a 5% GST, while tickets above Rs 300 would continue to attract 18% GST.
Currently, movie tickets priced up to Rs 100 are taxed at 12% GST, and tickets above Rs 100 face an 18% GST.
The MAI states that the Rs 100 tax bracket is now irrelevant due to inflation, and the current structure makes a bulk of tickets fall under the 18% GST slab, rendering them unaffordable for many.
The industry believes that with GST rationalisation, India could significantly increase its cinema screens from the current 9,000 to 20,000 within the next 7-8 years.
A lower GST is expected to directly reduce ticket prices by approximately Rs 40 per ticket, making movies more accessible to middle-class families, especially in Tier I and Tier II cities.
India's tax structure on cinema tickets is considered among the highest globally, with countries like China levying less than 10% tax.