Film industry rejoices as Government slashes GST rate on movie tickets
GST rates on movie tickets above and below Rs. 100 have been brought down to 18% and 12% respectively
The Goods and Service 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.
Thanking the Prime Minister for slashing the GST rates on movie tickets, Dharma Productions owner Karan Johar shared on social media:
Would like to thank our Prime Minister @narendramodi 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..... https://t.co/QEn303lBti
— Karan Johar (@karanjohar) December 22, 2018
Bollywood actor Aamir Khan also took to social media to express gratitude towards this move:
Heartfelt thank you to Honorable PM & the Govt of India for considering the request of the film industry for reduction in GST. If Indian cinema hopes to compete in the world market then we need the support of the Govt & Administration.
This is a great 1st step in that direction.
— Aamir Khan (@aamir_khan) December 22, 2018
Actor Vishnu Vishal, whose Silukkuvarpati Singam was released this Friday, also lauded the government's decision:
Superb news for Cinema :):) tickets upto Rs. 100 which were under 18% GST slab is brought down to 12% slab. Tickets above Rs. 100 were under the 28% slab. These tickets will now be under 18% slab. :) #SilukkuvaarPattiSingam pic.twitter.com/LISSKsv4qn
— VISHNUU VISHAL - VV (@vishnuuvishal) December 22, 2018
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."
The GST 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.