GST slash on movie tickets: Single screens to get a boost
Industry watchers believe the move, while limited, is a step forward in reviving cinema halls and boosting theatrical business across India.
The Goods and Services Tax (GST) Council announced a significant revision of tax slabs on Wednesday, following Prime Minister Narendra Modi’s recent remarks on easing GST rates. The new rates—5% and 18%—will take effect from September 22, 2025.
Among the most closely watched sectors was cinema. Previously, movie tickets priced up to ₹100 were taxed at 12%. With the new reform, the GST rate on these tickets has been reduced to 5%, while tickets above ₹100 remain unchanged at 18%.
This 7% cut is expected to make tickets at single screens across the country more affordable, encouraging more footfalls, especially in small towns and rural markets. For producers, distributors, and exhibitors, the measure could translate into higher revenues despite lower ticket prices.
The Multiplex Association of India (MAI) had earlier appealed to the government to extend the 5% slab to tickets priced up to ₹300. However, the request was overlooked, leaving multiplexes and premium theatres outside the relief bracket.
The Indian film industry, spanning Bollywood, Tollywood, Kollywood, and other regional sectors, grosses over ₹15,000 crore annually. Yet, it has been struggling with post-Covid audience fatigue, as viewers increasingly turn to OTT platforms and television for cheaper alternatives.
The revised GST structure is expected to rejuvenate single screens and mid-range theatres. Pawan Kalyan’s much-awaited OG, releasing on September 25, will be the first major Tollywood release under the new tax system.
Other big-ticket projects, including Mass Jathara, Andhra King Taluka, Akhanda 2, and Sankranthi heavyweights like The Raja Saab, Mana Shankara Vara Prasad Garu, Jana Nayagan, and RT76, are set to benefit with potentially stronger gross collections.
