GST cut on movie tickets, but no relief for cinegoers

Rate cut was notified with effect from Dec. 31 midnight

A 10% drop in Goods and Services Tax (GST) rates from January 1 should have translated into a ₹15 dip in ticket prices at multiplexes where the ticket rates are priced at ₹150. Right? Wrong.

Cinegoers who queued up to spend a few hours at the movies found no relief in ticket prices at most cinema halls. “There is no change in rates. If the company changes the rates it will be automatically reflected in the bill,” said the cashier at PVR Multiplex in Panjagutta before the evening show.

The GST Council, in its 31st meeting in New Delhi on December 22, had recommended a reduction on GST in ticket prices. “GST rate on cinema tickets above ₹100 shall be reduced from 28% to 18% and on cinema tickets up to ₹100 from 18% to 12%,” was the recommendation.

States, Centre notify

The cut in rates was notified by the states and Centre with effect from midnight of December 31. But on the first day of the new year, there was no implementation in change of rates in cinema halls in Hyderabad.

‘Approach GST cell’

“There has to be a reduction in prices once the new rates are notified. If they are not implemented, consumers can take up the issue with the anti-evasion cell of GST’s Hyderabad Commissionerate,” said a commissionerate official, when asked about non-implementation of cut in GST by cinema owners.

While moviegoers could do little besides having a small argument with the ticketing staff, others took to social media to raise the issue. “@PVRSupport Why are the ticket rates same at PVR cinemas Hyderabad in spite of revised GST effective from today? (sic),” tweeted Prithiv Siddharth.

“The rates have not changed. We have no idea when the rates will change,” said a staffer at Prasads Multiplex, one of the more popular entertainment centres in the city.

The cut in GST on movie tickets was notified after a sustained and high-voltage campaign by the mandarins of movie industry.

The benefit of the cut in taxes have to be passed on to consumers as there are stringent norms for filing the GST returns.