Movie tickets be more expensive under the new GST

Multiplex operators have expressed disappointment with the GST rate for cinemas, saying a lower rate would have made watching movies more affordable for all.

The GST Council, led by finance minister Arun Jaitley, has fixed rate on movie tickets at 28 per cent, the highest rate slab which is also applicable for casinos and five-star hotels. 

Jaitley on Friday said, "Cinema halls are currently paying a service tax of 15 per cent plus a state entertainment tax that ranges from 28 per cent to about 100 per cent . All these will be subsumed under 28 per cent GST rate, bringing down costs of service significantly." However, multiplex  operator said that at 28 per cent the industry has not got a fair deal. 

"It is shocking to see the government is classifying watching movies as luxury and subjecting us to the similar tax structure as of five-star hotels and casinos," said Nitin Sood, CFO of PVR, a leading multiplex company for which entertainment tax is 26-27 per cent on tickets and 12 per cent on food and beverages.