The bracketing of movie tickets in luxury goods at 28% rate under GST has been met with fierce criticism by the entertainment industry. However, its impact on the two biggest multiplexes; PVR Cinemas and Inox would be neutralised in major territories – Maharashtra and Delhi.
Together, both these multiplexes make up 46% of total multiplex screens in India. Both territories – Maharashtra and Delhi presently charge 40% tax on movie tickets and 11% tax on foods and beverages served in multiplexes. Post GST, movie tickets would be charged at 28% and foods and beverages would attract a levy of 21%,thus, neutralising the net effect of changes in both these territories.