Movie tickets below Rs 100 are set to become cheaper after the GST Council announced the two-tier tax rate system, set to benefit the common man. In a relief to cinemagoers heading to single screens, movie tickets below Rs 100 will now be available at a cheaper rate, as the GST rate levied on them has been slashed from 12% to 5%. However, there is no change for tickets above Rs 100, which will continue to attract an 18% tax rate.
This comes after the Multiplex Association of India (MAI) had appealed to the government to place movie tickets priced up to Rs 300 under the 5% tax slab. It was aimed to make cinema more affordable for audiences, support theatre owners, and boost infrastructure development in smaller towns and cities.
Follow the biggest reactions after the GST 2.0 reform here.
Are all movie tickets becoming cheaper?
Only cheaper tickets with the retail price up to Rs 100 will now attract a 5% GST rate with input tax credit (ITC), down from 12%. However, there is no change in movie ticket prices above Rs 100, and they will continue to attract 18% GST.
Similarly, for IPL matches and tickets for sporting events, they will attract 40% GST, after a significant increase from 28%. It will not only raise costs, but also fund the globally growing popularity of such events, attracting lakhs of audience to the venues.
Blow for cricket enthusiasts
The price increase has previously cost Rs 1,280, but will not increase to Rs 1,400, seeing a more than Rs 100 jump. A Rs 500 ticket, on the other hand, will now cost Rs 700 after the 40% tax slab, while a Rs 2000 ticket will rise to nearly RS 3000 after the reform, starting September 2022.
Seeing it as a luxury activity, the GST 2.0 reform will only affect the IPL matches, a premium sporting franchise. This comes after Indian lobbied for hosting the 2036 Olympics, and the 2030 centenary Commonwealth Games.