Following Indian Prime Minister Narendra Modi’s recent announcement on reduced GST rates, the Goods and Services Tax (GST) Council dropped a major announcement on Wednesday, revising the GST slabs of various commodities. The new rates, 5% and 18%, will come into effect from September 22, 2025.
Meanwhile, eyes were on the new GST rates for movie tickets. In the previous system, movie tickets up to Rs 100 attracted a GST of 12%. This has now been reduced to 5% in the new and revised slab. However, tickets that cost above Rs 100 rate remain unchanged at 18% GST.
With a significant 7% reduction in the GST for tickets below ₹100, the ticket rates at most single screens across the country will become cheaper, boosting footfalls and in turn bringing in higher revenues for the film trade, including producers, distributors, and exhibitors.
Incidentally, the Multiplex Association of India (MAI) had written a letter to the government of India, urging the authorities to bring movie tickets priced up to Rs 300 under the 5% slab. However, their request has been ignored by the GST Council.
The Indian film industry, including Tollywood, Bollywood, Kollywood, and all other major regional film industries, grosses over Rs 15,000 crore annually. The Indian film trade has been reeling under a severe financial crisis since Covid-19.
Audiences have been giving the big screens a miss and opting for cheaper platforms such as OTT and television to watch the latest movies. With the reduced ticket rates, audiences may once again flock to single screens, especially in the rural markets.
The reduction of GST in movie tickets up to Rs 100 will also benefit Tollywood trade, although marginally. Pawan Kalyan’s OG will be the first Tollywood biggie that will release (September 25) in the revised GST system.
Most of the upcoming big-budgeted movies, such as Mass Jathara, Andhra King Thaluka, Akhanda 2, and Sankranthi biggies like The Raja Saab, Mana Shankara Vara Prasad Garu, Jana Nayagan, and Ravi Teja’s RT76, will witness increased revenues in their gross box office collection.
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