Govt must bring new GST structure for film tickets: Multiplex body
The Indian film industry has been reeling under the impact of the Goods and Services Tax (GST) on movie tickets for several years now. The Multiplex Association of India (MAI) has now requested the government to introduce a new GST structure for film tickets, citing inflation and the COVID-19 pandemic as the reasons for the change. According to Kamal Gianchandani, President of MAI, the government should consider introducing a two-tier GST structure for movie tickets.
In an interview, Gianchandani suggested that tickets priced up to ₹300 should attract a GST of 5%, while tickets priced above ₹300 should be levied with an 18% GST. He believes that this new structure will help the film industry to recover from the losses it has incurred over the past few years.
The MAI President explained that the cost of living has increased significantly over the last 7.5 years, and the COVID-19 pandemic has further exacerbated the issue. As a result, cinema consumption has changed, with people opting for higher-end experiences. The current GST structure, which is a flat 18% rate for all movie tickets, is not feasible for the industry.
Gianchandani pointed out that the current GST structure is not only affecting the film industry but also the consumers. He said, “The current GST rate is a major deterrent for consumers who are looking for a premium experience. By introducing a new GST structure, we can make cinema more affordable for consumers while also ensuring that the industry remains viable.”
The MAI President also emphasized the need for the government to increase the number of screens in the country. Currently, there are around 10,000 cinema screens in India, but the MAI wants to increase this number to 20,000. Gianchandani believes that this will not only create more employment opportunities but also increase cinema consumption.
The proposal to increase the number of screens has been met with skepticism by some industry experts who argue that it will lead to a glut in the market and reduce the average revenue per screen (ARPS). However, Gianchandani believes that the government should focus on creating a level playing field for all cinema operators, including single-screen cinemas, multiplexes, and satellite cinemas.
The MAI President also highlighted the need for the government to provide more support to the film industry. He said, “The film industry is a significant contributor to the country’s GDP, and it is essential that the government provides more support to the industry. This can be done by reducing taxes, providing more subsidies, and increasing the number of screens.”
The Indian film industry has been facing several challenges over the years, including the impact of digital platforms, piracy, and the COVID-19 pandemic. The government’s support is crucial in helping the industry to recover and grow. The proposal to introduce a new GST structure for film tickets and increase the number of screens is a step in the right direction, and it is hoped that the government will consider it seriously.
In conclusion, the Multiplex Association of India has requested the government to introduce a new GST structure for film tickets, citing inflation and the COVID-19 pandemic as the reasons for the change. The proposal suggests a two-tier GST structure, with tickets priced up to ₹300 attracting a 5% GST and tickets priced above ₹300 attracting an 18% GST. The MAI President also emphasized the need for the government to increase the number of screens in the country and provide more support to the film industry. It is hoped that the government will consider the proposal seriously and take steps to support the film industry.
