GST Council reduced tax rates on several consumer products as a total of 33 items have been moved from 18% GST slab to 12% and 5%. Also, 7 items have been brought to 18% from 28%.
GST Council Meet: The Goods and Services Tax (GST) Council’s decision to reduce GST on cinema tickets has brought cheers to movie-lovers and the film industry. In the 31st GST Council meet on Saturday, the Finance Minister Arun Jaitley announced a tax reduction on movie tickets of less than Rs 100 from 18% to 12%, while tickets above than Rs 100 to 18% from the earlier 28%.
Soon after the statement, Producers Guild of India (PGI) issued a statement, hailing the government’s move and termed the decision as a “progressive step” which will help the industry “move forward positively.”
“This will help the industry move forward positively with increased investments in both exhibition infrastructure and creative development, enabling even better cinema and greater screen density across the country,” Siddharth Roy Kapur, President of Producers Guild of India said in a statement.
It may be noted that a delegation from the film industry, including Siddharth Roy Kapur, met Prime Minister Narendra Modi and discussed several issues the industry is currently going through.
“In the past one year since Good and Services Tax (GST) implementation, the film industry was grappling with changes, challenges and issues arising post implementation of the GST legislation,” PGI said, adding “This was majorly due to cinema tickets placed in the highest tax slab wherein cinema tickets whose prices exceed Rs 100 were subject to GST at 28% while those whose price is up to Rs 100 are subject to GST at 18%. Such high rates resulted in high ticket prices of cinema-goers.”
The voice of the film industry was finally heard and immediate action taken, thanks to @narendramodi ji.
For movie tickets priced below Rs. 100 the tax has been reduced from 18% to 12% now and for tickets priced above Rs. 100 the tax has been reduced from 28% to 18% now.
— Ajay Devgn (@ajaydevgn) December 22, 2018
Meanwhile, GST Council reduced tax rates on several consumer products as a total of 33 items have been moved from 18% GST slab to 12% and 5%. Also, 7 items have been brought to 18% from 28%. Finance Minister Arun Jaitley said that the recommendations by the fitment panel have been considered in today’s meet. The 31st GST Council meeting chaired by Finance Minister Arun Jaitley at Vigyan Bhawan was attended by finance ministers all the states.