The taxation on cinema tickets has been relaxed. The goods and services tax on tickets up to Rs 100 has been reduced from 18 per cent to 12 per cent, while GST on tickets above Rs 100 has been reduced to 18 per cent from 28 per cent.
The high taxation on cinema tickets, especially those above Rs 100 had been a matter of concern for exhibitors since the GST tax slabs were announced. The high taxation caused cinema tickets to become more expensive, as exhibitors were forced to pass on the tax to consumers.
Siddharth Roy Kapur, president of Producers Guild of India, said, “On behalf of the Indian film industry, I would like to thank the government for taking this progressive step. 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. We look forward to continuing to engage with the government on initiatives that will help to unleash the full potential of the film industry. Cinema can be a significant instrument of Indian soft power around the world, while continuing to act as a uniting force for all Indians - a role it has played for more than a century.”