The Multiplex Association of India (MAI) is advocating for the rationalisation of GST for cinema tickets in order to improve affordability and drive-up footfalls. The association is urging the government to simplify and bring down the tax to 5% for tickets priced up to Rs 300, which it states is in alignment with Prime Minister Modi’s call for greater affordability in his recent address to the nation on Independence Day.
Inflationary pressures
As per the existing tax regime, which was revised in 2018, GST on movie tickets up to Rs 100 is 12% and for tickets priced at over Rs 100 is 18%. Kamal Gianchandani, president of MAI, explains that the current regime is not conducive for the multiplex business especially with inflationary pressures.
“India is still an under-screened country with an average of eight screens per million and it especially lags behind in tier-II and III cities. A reduced GST rate of 5% on tickets priced at Rs 300 or under will help exhibitors boost footfalls, protect jobs and restore the theatre-going habit in our country,” says Gianchandani, arguing that this would make cinema more accessible to the masses.
The association also adds that this request is not for a subsidy but rather rationalisation, which recognises that a Rs 300 price point in 2025 is the equivalent of a Rs 100 price point back in 2018.
Social experience
Since cinema is an essential cultural and social experience for Indians, Gianchandani adds that a lower GST would provide greater access to entertainment, particularly lower-income audiences. It would also be a welcome relief to exhibitors in smaller markets, which have been dealing with the impact of the pandemic lockdowns, piracy and rise of OTT consumption.
The association adds that the plea is aligned with making cinema affordable not just in India but Bharat. A 5% GST on Rs 300 would boost cultural equity, economic growth and regional outreach, explains Gianchandani.