The GST Council’s decision to slash tax on movie tickets priced up to Rs 100 may not make a significant difference to the multiplex audience or even cinegoers who visit single-screen theatres in the metros, say stakeholders in Bengal.
The tax relief, however, will benefit both consumers and businesses in small towns.
Under the new GST slab, the tax on movie tickets priced at or below Rs 100 has been dropped from 12 per cent to 5 per cent.
On paper, the cut means cheaper movie outings. But a day after the announcement was made, no theatre in Kolkata offered movie tickets below Rs 100. The cheapest tickets, even at single-screen theatres, were priced at Rs 112 and above, as per BookMyShow.
However, a Rs 90 ticket, that would have cost Rs 100.80 earlier, will now cost Rs 94.50 in Uttarpara of Hooghly district, about 16km north of Kolkata.
“Single screens and theatres in the districts are going to benefit from the reduction in GST as the tickets there cost less than Rs 100,” said Arijit Dutta, the owner of Priya cinema in Kolkata.
But Dutta wondered if a mere change of Rs 8-9 in ticket price would sway the decision of a cine-goer. “If someone decides to watch a movie, I don’t think this is going to change their decision. A reduction in GST for the Rs 100 and above slab would’ve been more beneficial,” he added.
Naveen Chowkhani, the owner of Navina theatre in south Kolkata, welcomed the GST rate change. “Single screen theatres are going to benefit from the cut in GST rates. We always strive to keep our ticket prices lower for the audience, and we will be able to pass on the benefit to them with the new tax rates,” he said.
While the GST on movie tickets priced up to Rs 100 has been dropped, the tax on tickets priced above Rs 100 remains 18 per cent.
“The new relief is expected to encourage cinema viewing and support smaller theatres, especially in tier-2 and tier-3 cities,” said Ayush Kumar Shaw, a 25-year-old Kolkata-based chartered accountant aspirant.
Audiences in smaller towns are elated. “I mostly watch movies at single-screen theatres in Serampore or Seoraphuli where tickets cost less than Rs 100. This move will bring down the ticket prices. The quantum of decrease is not important for me. I am happy with this decision,” said Tina Banerjee, a 45-year-old freelance content writer from Uttarpara.
Joy, a college student from Jalpaiguri, too, welcomed the move. “I generally watch movies on Tuesdays now because of the Rs 99 offer. But with the reduction in GST, I am hopeful that prices will come down on other days as well,” the 23-year-old said.