Government Reduces GST on Movie Tickets to Support Film Industry
In a recent parliamentary session, Finance Minister Nirmala Sitharaman addressed concerns regarding the taxation of movie tickets, highlighting efforts to support the film industry through tax rationalization.
GST Reduction on Movie Tickets
The Finance Minister emphasized that the Goods and Services Tax (GST) on movie tickets priced above ₹100 was reduced from 28% to 18% in 2018. This decision was made after multiple GST Council meetings aimed at making cinema more affordable and supporting the entertainment sector.
Pre-GST Taxation Scenario
Before the implementation of GST, entertainment services were taxed at an average rate of 30%. Movie tickets were subject to various entertainment taxes, along with a combined 20.5% Value Added Tax (VAT) and service tax. In some states, entertainment tax rates were as high as 100%, significantly increasing the cost for moviegoers.
Taxation on Food and Beverages in Theatres
The Finance Minister also addressed the taxation of food and beverages sold in theatres. Under the current GST regime, these items are now taxed at a lower rate of 5%, including popular items like popcorn sold at food stalls within cinema halls. This reduction aims to make the overall cinema experience more affordable for patrons.
Government Initiatives to Promote the Film Industry
Beyond tax reductions, the government is taking steps to position India as a global leader in media and entertainment. This year, India will host “Waves 2025,” the world’s first Audio-Visual Entertainment Summit, in Mumbai. The event aims to showcase Indian talent on a global stage and attract international collaborations.
Additionally, a National Centre for Excellence in Animation, Visual Effects, Gaming, Comics, and Extended Reality has been approved by the cabinet to boost digital media innovation in the country.
To facilitate international co-productions, India is signing treaties with 15 countries and has streamlined the film-shooting approval process through a single-window clearance system.
These initiatives reflect the government’s commitment to supporting and promoting the Indian film industry, ensuring its growth and sustainability in the global market.
