GST Cut on Movie Tickets

The Goods and Services Tax (GST) Council has announced a significant tax cut on Movie Tickets, which is set to bring relief to single-screen theaters across the country. As per the new rates, cinema tickets priced at Rs 100 or below will attract a reduced GST of 5%, down from the earlier 12%. This 7% tax cut is expected to make movie-going significantly cheaper, encouraging more people to return to the big screen.

The new GST rates, which will come into effect from September 22, 2025, are likely to have a positive impact on the film industry. The reduced tax rate will benefit single screen theaters, particularly in rural and small town markets where affordability has been a major barrier. However, multiplexes and premium theaters in metros, which charge above Rs 100 per ticket, will continue to attract an 18% GST. The Indian film industry, which grosses over Rs 15,000 crore annually, has been struggling with declining footfalls post-Covid, and this tax cut is expected to provide some relief.

The tax cut is also expected to drive higher revenues across the value chain, from producers and distributors to exhibitors. Industry experts believe that the reduced GST rate will make cinemagoing more affordable, particularly for budget-conscious audiences. However, the Multiplex Association of India (MAI) had urged the government to extend the 5% GST slab to tickets priced up to Rs 300, which was not taken up by the GST Council.

Overall, the GST cut on Movie Tickets is a welcome move for the film industry, and it remains to be seen how it will impact the box office collections and audience footfalls in the coming months.