The Goods and Services Tax (GST) Council on Saturday brought down the GST rate on cinema tickets below Rs 100 from 18 per cent to 12 per cent. Tickets above Rs 100 will be levied an 18 per cent GST rate instead of the earlier 28 per cent. Prime Minister Narendra Modi had earlier announced that the government is aiming to bring 99 per cent of items below the 18 per cent GST slab.
Welcoming the tax reduction, Siddharth Roy Kapur, President of Producers Guild of India, said, “On behalf of the Indian film industry, I would like to thank the government for taking this 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.”
Earlier this week, Kapur along with 17 other delegates from the Hindi film industry, including Karan Johar, Akshay Kumar, Ajay Devgn and CBFC chief Prasoon Joshi had met Narendra Modi to discuss the future of the movie business.
Celebrating the occasion, Dharma Productions owner Karan Johar shared on social media: “I would like to thank our Prime Minister Narendra Modi for the swift action on the GST rate on movie tickets....Great news at the year end! Thank you sir for your proactivity and support....”
PV Sunil, MD Carnival Cinemas, said, “We are thankful to the Govt for rationalising the GST rates. We will pass on the benefits to the patrons which can bring in more footfalls. Overall it’s a great achievement as we have been putting in offers to achieve this since the time of introduction of GST.”
Future items that are yet to be talked about
The Goods and Services Tax council, headed by Finance Minister Arun Jaitley, also agreed to bring down tax rates on video game consoles, air travel of pilgrims, power banks, lithium-ion batteries and digital and
video cameras