How GST Influenced The Price Of Movie Tickets?
Goods and Service Tax is a taxation scheme announced by the Government of India and came into existence from July 2017. It is a common taxation scheme. This new scheme has revolutionized the taxation principle of indirect taxation. The introduction of GST has dramatically impacted the economy of our country. Several industries and sectors of our country are facing changes with the GST regime. The film industry is experiencing various changes with the implementation of GST, and it directly affects the Indian economy. Here you would know about the impact of GST in the film industry and its influence in the price of movie tickets.
GST Impacts Film Industry
Goods and Service Tax has lowered certain tax rates and increased specific tax rates of various industries. The film industry is one of the essential industries that are responsible for the entertainment of people. The film industry is levied with high entertainment tax, and thus the implementation of the new GST scheme has impacted the film industry to a greater extent. The film industry was facing tough situations during the introduction of the GST scheme. With the new GST scheme, the entertainment tax has been removed. This was an excellent move for states with high entertainment tax.
The initial GST rate for the movie tickets less than Rs.100 is about 18%, and it was about 28 % for movie tickets that cost above Rs.100. Thus, movie tickets would cost more with the implementation of the GST scheme. The film industry would continue to struggle with this new GST rates on the movie tickets. Thus, it has added up the burden of the ordinary people who visit theatres for entertainment.
A large number of people wishes to watch films in theatres as it is a favorite environment option. The government wanted to boost the economy of our country with higher GST rates for movie tickets. But the sad reality is that the new taxation scheme would degrade the film industry severely.
GST Impacts Movie Ticket Price
The government has taken specific actions on the raised GST rates on movie tickets. This decision has come into force after the GST council meeting organized by the cabinet ministers. Finance ministry has decided to offer this decline in the GST rate as the film industry is about to generate revenue of about 900 crores. The movie tickets would cost less after the change imposed in the GST rates. Thus a GST of 28% on movie ticket more than Rs.100 is reduced to 18%. The old GST rate of 18 % for movie tickets that cost less than Rs.100 is lowered to 12%. The decline in the GST rates on the movie tickets is a decision taken by the government with the constant requests from the officials of the film industry. The heads of the film industry wanted a uniform GST rates for the entertainment industry. Check out – the latest insights of GST among movie tickets.
The news of the decrease in GST rates on the movie tickets is good news for the film industry. This would bring down the price of movie tickets. The officials of the film industry welcome the recent announcement of the Government in the decline of the GST rates on movie tickets. The progressive step taken by the government would help the film industry to move forward. The lowered GST rates would foster positive investment in the film industry. This would enable infrastructure development and increased screen density in India. The reduced GST rates are, of course, a relief to the film industry. The new GST rates would come into effect from January 2019. It is, of course, good news for people who love to enjoy movies in theatres and multiplexes.
The above offers the impact of GST on movie ticket prices and the economy of the film industry.