As the weekend approaches, cinema lovers and industry insiders are abuzz with anticipation for Sunday’s budget meeting. There’s a hopeful sentiment in the air, as many are looking for further relief on ticket prices. Although GST 2.0 brought some much-needed reductions, the soaring ticket costs still linger under older tax categories.
Sunday’s budget session has brought forth a lot of discussions amongst the masses, especially within the entertainment industry. The GST 2.0 slab, which was announced only months ago at the 56th GST Council meeting, had brought forth some relief to moviegoers, as the ticket taxing slabs had been fairly reduced. However, the argument remains that higher-priced tickets are still being taxed within the older tax brackets, which keeps up hope for the industry and moviegoers that the 11 AM session will bring some more relief to the ticket prices.
About the GST 2.0 reform
Before the introduction of the GST 2.0 slab, tickets priced till Rs 100 were taxed at 12%, while any tickets priced above that were taxed at 18%. Now, with the new tax slab released for GST on tickets, the 12% and 28% slabs have been completely removed and have been shifted to 5% and 18%, respectively.
Regional reforms
Beyond the taxing slabs on movie tickets, regional areas have taken separate measures to ensure that such ticket prices do not rise beyond the required amount. In September last year, the Karnataka government issued an order that put a cap limit of Rs 200 on all movie tickets to make the experience more accessible. The order, however, was stayed due to various concerns, one of which was that the price did not consider premium theaters and high-end movie experiences. The Kerala government had also made announcements last year to set up a specialized committee to discuss and implement the regulation of movie tickets around the state.
Expectations from the budget for the media and entertainment industry
Reports from EY–FICCI and MPA–Deloitte revealed that the film industry garnered earnings of around Rs 16,000–18,000 crore in gross box office revenues. These are statistics from more recent years, with Hindi movies touching Rs 5,280 crore in 2024 alone. Along with many other sectors, such as railways, defense, infrastructure, urban development, and manufacturing, amongst many others, the M&E industry is also on the lookout for the latest Union budget announcements. Many are expecting newer GST tax slabs to be announced, which will cover a wider range of ticket prices to ensure that the moviegoing experience becomes even more affordable for many people around the country. Go to Source
