Multiplexes Push for GST Rationalisation on Tickets and F&B

Multiplex chains across India are asking the government to reduce GST on movie tickets and allow input tax credit (ITC) on food and beverages. They believe these changes will make cinema more affordable and help the industry grow faster, especially as it continues to recover from the pandemic and rising inflation.

Current Tax Burden

Right now, GST on cinema tickets is:

• 12% for tickets up to ₹100
• 18% for tickets above ₹100

This system has been in place since 2018. Multiplex owners say it creates confusion, especially when tickets are priced at ₹99 under special offers, as it falls into a lower slab.

What the Industry Wants

Multiplexes are proposing several key reforms:

• Lower GST on tickets: Multiplexes suggest a 5% GST on tickets up to ₹300, while keeping tickets above ₹300 at 18%. This could reduce the average ticket price by about ₹40 across India.
• Input Tax Credit (ITC) on F&B: Right now, multiplexes pay GST on food and beverages but cannot claim ITC. Allowing ITC would help them improve revenues.
• Single-window clearance: A simplified licensing system to reduce paperwork and make operations easier.

According to Kamal Gianchandani, President of the Multiplex Association of India (MAI), these reforms could help cinema screens grow by 10% every year, particularly in Tier-II and Tier-III cities where affordability is crucial.

Different Opinions

Not everyone agrees on the exact solution:

Bhuvanesh Mendiratta (Miraj Entertainment) supports a single GST rate of 5% but says tickets above ₹500 (premium or gold class) can be taxed at higher rates like 12% or 18%.

Ragesh Mehta (MovieMax Cinemas) argues that lower GST won’t guarantee more footfalls. He says audiences pay even ₹800–₹1,000 for blockbuster films like Pushpa 2: The Rule. In his view, content quality is more important than ticket pricing.

The Bigger Picture

Cinema owners believe that making tickets more affordable through GST rationalisation will help them compete with OTT platforms, which became very popular during the pandemic. With inflation rising and people cutting down on expenses, the industry feels tax reforms are essential for long-term growth and survival.

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