The Goods and Services Tax Council met for its 31st meeting on Saturday where it has rationalised GST rates for several goods and services placed in the higher tax slabs. Among other tax rate cuts, the all-powerful council has decided to make movie tickets cheaper.
Approving the recommendations made during the meeting today, the GST Council has decided to reduce GST levied on cinema tickets priced up to Rs 100 from 18 per cent to 12 per cent. Film tickets priced above Rs 100 will attract GST at a rate of 18 per cent, instead of the earlier 28 per cent.
"GST rate on cinema tickets above Rs. 100 shall be reduced from 28 per cent to 18 per cent and on cinema tickets up to Rs 100 from 18 per cent to 12 per cent," a statement by the Finance Ministry said.
It is a medium of mass entertainment which has a revenue impact of Rs 900 crore, Finance Minister Arun Jaitley said while briefing the press after the 31st GST Council meeting.
The reduction in cinema ticket prices, along with changes in GST rates for other goods and services, will be brought into effect from January 1, 2019 via Gazette notifications "which will have the force of law", the Finance Ministry stated.
Meanwhile, the Producers Guild of India has hailed the decision of government to reduce GST on cinema tickets as a "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," Siddharth Roy Kapur, president of Producers Guild of India, said in a statement.
Recently, a delegation from the film industry met Prime Minister Narendra Modi and discussed several issues troubling the industry.
Edited by Vivek Punj with PTI inputs