GST impact on entertainment industry

GST of 18% compared with the current rate of 28% on movie tickets priced below Rs 100 augurs well for single-screen theatres. Gains for multiplexes would be limited since just over 5-7% of their revenue is from low-priced tickets. For them, GST impact would be muted. In Delhi and Maharashtra, GST for tickets priced above Rs 100 will be 28%, much lower than the current 40% tax. The gain, however, will be offset by 21% GST on food and beverages, higher than the current 11% tax. On the positive side, multiplexes would be able to claim input tax credit on products and services they use.