Major Multiplexes – PVR and Inox GST Impact Offset by Lower Levy in Key Territories

Multiplexes in Delhi, Maharashtra to have neutral effec of GST

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.

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