The Multiplex Association of India (MAI) has urged the government to rationalise GST on movie tickets. It has requested a 5% GST rate for tickets priced up to Rs 300, which could improve affordability and boost audience turnout in theatres.
At present, tickets up to Rs 100 are taxed at 12%, while those above Rs 100 attract 18%. This system, last revised in 2018, no longer matches inflation or the commercial realities of today’s cinema industry.
MAI President Kamal Gianchandani explained that the Rs 100 slab is outdated since very few cinemas offer tickets at such rates. He said the revision would encourage more people to visit theatres and support the industry’s recovery.
If implemented, the 5% GST rate would lower costs significantly. For example, a Rs 295 ticket in Hyderabad could drop to Rs 262.50, saving the audience nearly Rs 32.50. Such a change could boost attendance in cities across India.
MAI represents over 11 cinema chains with more than 500 multiplexes and 2,500 screens, covering about 75% of the industry. The association believes this step would not only increase ticket sales but also attract fresh investments.
The reform could generate employment across the film ecosystem, from production to exhibition. It also aligns with the government’s ongoing push to simplify GST slabs, with reports suggesting changes may be announced by Diwali this year.
The GST Council is expected to discuss the matter in upcoming meetings. The possible two-tier system may set GST at 5% for tickets up to Rs 300 and 18% for those above, balancing affordability with revenue.
However, audiences worry that producers might raise the base ticket prices, offsetting the impact of the reduced GST. Despite this concern, the proposal is seen as a move that could benefit both audiences and multiplex operators.
