The Multiplex Association of India (MAI) has sought a "rationalization of the Goods and Services Tax (GST) rate" for the multiplex and cinema exhibition industry.
The current GST structure taxes tickets at 12% for prices up to Rs 100 and 18% for prices above that. The MAI believes the Rs 100 threshold is outdated and no longer reflects current economic conditions. They are proposing a revised tax structure with a 5% GST with Input Tax Credit (ITC) for tickets up to Rs 300 and an 18% GST for tickets beyond that amount. The MAI believes this revision would support the industry's viability, attract investment, and create jobs.
If the government accepts the proposal, ticket rates will come down. "Wherever there are ticket price limits, cinegoers can potentially benefit with reduced taxes, as Rs 295 will become Rs 262 if it's 5% GST at the multiplexes in Hyderabad," Andhra Box Office wrote.
