The Goods and Services Tax (GST) Council, following Prime Minister Narendra Modi’s recent announcement on reduced GST rates, has revised the tax slabs on several commodities. The new rates of 5% and 18% will come into effect from September 22, 2025.

Among the most closely watched changes were those concerning cinema tickets. Tickets priced at Rs 100 or below, which were previously taxed at 12%, will now attract a reduced GST of 5%. For tickets above Rs 100, however, the GST remains unchanged at 18%.

The 7% tax cut for lower-priced tickets is expected to make cinema-going significantly cheaper at single-screen theatres across the country. Industry experts believe this will encourage more people to return to the big screen, driving higher revenues across the value chain — from producers and distributors to exhibitors. The impact is likely to be felt most strongly in rural and small-town markets where affordability has long been a barrier.

The development comes at a time when the Indian film industry—spanning Bollywood, Tollywood, Kollywood, and other regional markets—has been struggling with declining footfalls post-Covid. The industry, which grosses over Rs 15,000 crore annually, has faced stiff competition from OTT platforms and television as audiences opted for cheaper viewing alternatives.

Meanwhile, the Multiplex Association of India (MAI) had earlier urged the government to extend the 5% GST slab to tickets priced up to Rs 300. Their request, however, was not taken up by the GST Council, leaving multiplexes largely outside the purview of the tax relief.