Can Lower GST Make Movie Tickets Affordable In India? Multiplex Association Urges GST Reform To Reach 20,000 Screens

Indian exhibitors are sounding the alarm over the current dual GST slabs, high taxes, and the lack of meaningful government support.

These issues are making it tough for the cinema industry to grow, especially when it comes to expanding the number of screens across the country.

Indian Exhibitors Demand GST Reform to Boost Cinema Screen Growth

With box office numbers slowly bouncing back, the multiplex sector is pushing for policy changes that could transform India into a 20,000-screen market.

Kamal Gianchandani, President of the Multiplex Association of India (MAI), put it plainly: India has the potential for at least 20,000 screens, but only if the government steps up with more favourable GST rules. He believes that with the right changes, the country could reach that target in the next seven to eight years.

So, what are the exhibitors actually proposing? They want a new GST structure that would bring the tax down to 5% on movie tickets priced up to Rs 300.

For tickets above Rs 300, they’re okay with the current 18% rate. The idea is to make cinema more affordable for the average person, especially since inflation and the changes brought on by COVID have already shifted movie-watching habits.

Why Indian Multiplexes Want GST Cut to 5% on Affordable Tickets

Right now, the GST on cinema tickets sits at 12% for tickets up to Rs 100 and jumps to 18% beyond that—a structure that’s been in place since 2018. Gianchandani points out that the Rs 100 slab was never practical, even back then. As a result, most tickets end up taxed at the higher rate, which just doesn’t make sense in today’s market.

The industry argues that lower GST will directly translate into cheaper tickets and more screens, especially in smaller towns. Most of India’s 9,000 cinema screens are still concentrated in southern states like Telangana, Andhra Pradesh, Kerala, Tamil Nadu, and Karnataka.

Bringing down ticket prices by even Rs 40 could make a huge difference for families in smaller cities, where every rupee matters. Every time multiplexes run discounts, they see a clear spike in ticket sales. 

India’s tax on movie tickets is among the highest globally. Compare that to China, where taxes are below 10%. If the government acts, not only would established players feel more confident to expand, but new operators might also be encouraged to enter the business. Right now, lack of government support and post-pandemic uncertainty have left the industry hesitant.

Since COVID, multiplexes have only been able to add 200-250 screens per year, down from the pre-pandemic average of 300-350.

Even major chains like PVR INOX are opening new screens while simultaneously closing underperforming ones. Many single-screen cinemas have shut down for good, squeezed by changing viewing habits and the rise of streaming.

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