In a move that could change how india watches movies, the Multiplex Association of india (MAI) has urged the government to slash GST on movie tickets as part of the upcoming tax rationalisation plan. The demand comes after prime minister Narendra Modi announced changes in the GST framework, sparking hope for long-awaited relief for both audiences and theatre owners.
💸 The Current Tax Burden
At present, India’s movie tickets are taxed at steep rates:
12% GST on tickets priced below ₹100
18% GST on tickets priced above ₹100
This system has often been criticised as disproportionately high, driving away casual viewers and shrinking footfall in multiplexes.
📉 The Proposed Relief
The multiplex body has suggested:
5% GST on tickets up to ₹300
18% GST on tickets above ₹300
If approved, this could drastically lower costs for cinema-goers. For example, a hyderabad ticket priced at ₹295 currently costs significantly more after tax. Under the new 5% GST slab, it would drop to around ₹262.50—a price point far more attractive to middle-class audiences.
🎟️ Why This Matters
The MAI argues that the ₹100 threshold set back in 2018 is outdated, given rising inflation and entertainment costs. Rationalising the slab to ₹300 could revive footfall, making cinema outings affordable again. According to the FICCI-EY report, screen growth could jump from 2–3% annually to 10%, creating a win-win for both audiences and the industry.
🌍 A Global Context
The push comes at a time when the global film market is facing unique pressures, including a 100% tariff on foreign films in some regions. By making tickets cheaper, india could strengthen its domestic film industry and ensure a steady inflow of audiences, even during international disruptions.
🎤 industry Voices
“We are recommending that the ₹100 slab be raised to ₹300, so ticket prices till ₹300 should attract 5% GST, and anything higher than ₹300 should attract 18% GST,” said Kamal Gianchandani, MAI President, highlighting the need for rationalisation that balances affordability with revenue.
⭐ The Big Picture
If the government accepts this proposal, cinema lovers could soon enjoy movies at pocket-friendlier prices, multiplexes could witness renewed energy at the box office, and the industry might finally breathe easy after years of struggling with tax burdens and pandemic-era slowdowns.
⚡ Punchline: From ₹300 tickets to ₹262—this cut could be the blockbuster India’s multiplexes and movie buffs have been waiting for!
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