The GST Council’s sweeping tax reform introduces a two-tier GST structure for cinema tickets: tickets up to ₹100 will now be taxed at 5% with Input Tax Credit (ITC), while tickets priced above ₹100 remain unchanged at 18% GST with ITC. The reforms are set to take effect from September 22, 2025, aligning with the Navratri period.
What Has Changed?
- Affordable tickets (≤ ₹100) now benefit from a reduced GST of 5%, down from the previous 12%—a welcome relief for moviegoers in single-screen theatres and smaller towns
- Premium tickets (> ₹100) continue to attract 18% GST, with no changes applied.
Why This Matters
| Ticket Category | Old GST Rate | New GST Rate | Audience Impact |
|---|---|---|---|
| Up to ₹100 | 12% | 5% | Cheaper access for mass audiences |
| Above ₹100 | 18% | 18% | No relief for multiplex and premium ticket buyers |
- Single-Screen Theatres and Consumers: The reduced GST on low-priced tickets is expected to boost affordability and footfall, especially in small towns and among budget-conscious viewers.
- Multiplex Customers: Those purchasing tickets above ₹100 won’t benefit from any tax reduction.
- Industry’s Appeal: The Multiplex Association of India (MAI) had appealed to the government to extend the 5% slab to tickets priced up to ₹300, arguing it would boost cinema reach and infrastructure. However, this request was not accommodated.The Economic Times
Summary
While moviegoers with affordable ticket preferences reap the benefits of the GST reform, the tax on higher-end cinema experiences remains unchanged at 18%, maintaining current pricing dynamics in multiplexes.
