GST acts like a hero to help cinema get affordable
New Delhi (PTI): The government’s decision to reduce the GST rate on cinema tickets would make movie viewing more affordable, increase footfall and aid the growth of the industry.
GST reduction on cinema tickets
The Multiplex Association of India (MAI) appreciated Government’s decision to reduce GST rates on cinema tickets. The government Saturday brought down the GST rates on cinema tickets costing up to Rs 100 to 12% from the existing 18%. Moreover, tickets above 100 would attract 18% GST against 28% earlier.
This move would really help in reduction in prices and make the cinema viewing much more affordable. As per MAI President, lower ticket prices would attract more people to cinemas, which means more footfalls and our occupancy level would go up.
lower GST attracts investment
Lower GST would also improve the viability of the cinema exhibition industry and attract more investments in the sector. Infact lower cinema tickets would also increase the collection which means more pay back to distributors and content creators.
We can say that Overall the industry will see a significant growth – both quantitatively and qualitatively, going forward because of this GST reduction. The Director of INOX demanded that the GST slab for tickets above Rs 100 should also be brought down.
We are glad that the government has brought it down to 18 per cent,” he added. MAI represents around 75% of multiplex industry in India. Its 15 members operate more than 2,000 screens across the country.