The Indian film industry is witnessing significant changes with the recent GST reforms. Director Nag Ashwin, known for his blockbuster film Kalki 2898 AD starring Prabhas, has been vocal about social issues and has requested Prime Minister Narendra Modi to reconsider the GST rate on movie ticket prices. The GST Council has announced a reduction in GST slabs from four to two, effective September 22, which will impact ticket rates and concessions in cinema halls.
The new GST rates bring relief to moviegoers, especially for tickets priced below ₹100, which will now attract a 5% GST, down from 12%. However, tickets above ₹100 will continue to be charged 18% GST, meaning multiplexes and premium theaters in metros remain largely unaffected. Nag Ashwin has suggested extending the 5% slab to movie tickets up to ₹250, which could further boost the industry.
Impact on Movie Goers and Cinema Owners
The GST reforms will also affect the prices of snacks and beverages at movie theatres. Here's what's changing. Popcorn, Salted or spiced popcorn will attract 5% GST, while caramel popcorn will be taxed at 18% GST. Soft Drinks Aerated and caffeinated drinks will be taxed at 40% GST, making them more expensive. Ice Cream, pastries, and biscuits will attract 5% GST, down from 18%, making them slightly more affordable.
Overall, the GST reforms aim to simplify tax structures and reduce the financial burden on consumers. While the changes bring relief to some, others, like multiplexes and premium theaters, remain largely unaffected due to their higher ticket prices.