GST Cut On Movie Tickets Below ₹100 Brings Mixed Reaction

The Goods and Services Tax (GST) Council’s decision to reduce tax on cinema tickets priced up to ₹100 from 12 percent to 5 percent has drawn mixed reactions from the film industry. The new rates will come into effect from September 22.

For moviegoers, the change promises cheaper tickets in smaller theatres, especially in tier-2 and tier-3 cities where low-cost screenings remain popular. The reduction is expected to encourage more audiences to return to cinemas, many of which continue to struggle with low occupancy since the pandemic.

Film exhibitors welcomed the move, but industry leaders cautioned that the benefit may be limited. Large multiplexes, where tickets often exceed ₹100, will not see much impact. As a result, the reform is unlikely to revive footfalls in premium markets.

The Multiplex Association of India said that while the cut provides some relief, it does not address the deeper challenges faced by the sector. “Cinema is competing with home entertainment and streaming platforms. Reducing GST on low-priced tickets will help smaller theatres, but the overall impact may not be transformational,” an association representative explained.

Producers and distributors also stressed that long-term solutions are needed. They pointed to rising production costs, changing audience habits, and the dominance of digital streaming as structural issues that cannot be solved by tax reductions alone. Some suggested that a uniform lower GST rate across all ticket categories would provide broader relief.

The government, however, argued that the reform is a step towards making cinema more accessible. Officials said the measure is aimed at supporting audiences in semi-urban and rural regions, where ticket affordability remains a barrier. By lowering costs, the Council hopes to revive interest in the theatrical experience and support smaller cinema halls that are vital to local culture.

Analysts believe that the timing of the decision is important. With several big-budget films lined up for release in the festive season, the lower GST on cheaper tickets could help theatres attract price-sensitive audiences. In smaller towns, where single-screen theatres continue to dominate, the reduction could prove significant.

Despite the limited scope, exhibitors are preparing to highlight the lower prices in their marketing campaigns. Some cinema owners are considering additional discounts and special offers to draw crowds back into theatres.

Overall, the GST cut reflects the government’s attempt to balance revenue concerns with industry support. While not a comprehensive solution, it is expected to provide incremental relief and demonstrate responsiveness to the sector’s demands. Whether it leads to a sustained revival of cinema attendance remains to be seen.