GST rate impact: PVR, Inox Leisure shares gain up to 2.50%

Shares of PVR and Inox Leisure were trading higher in morning trade on Monday after the GST Council on Saturday slashed tax rates on 23 goods and services, including movie tickets.

GST on movie tickets costing up to Rs 100 has been cut to 12 per cent, from 18 per cent, while tickets costing over Rs 100 will now attract 18 per cent GST, against 28 per cent earlier. This will have an annual revenue implication of Rs 900 crore.

Sameer Kalra, Equity Research Analyst & Founder, Target Investing said, “The announcement is positive for today but the rate cut has to be passed on to consumer which will squeeze the margins. We would be positive for intraday trade.”


Inox Leisure was trading 2.51 per cent up at Rs 245 on BSE at around 9.40 am (IST), while PVR was up nearly 1 per cent at Rs 1,574.45 at around the same time.

FICCI welcomes the reduction of GST rates on 23 items by the GST council and taking the landmark reform to the next level by indicating that the 28 per cent bracket is already moving towards a sunset.

It further added that with a reduction in the rates on more items in the offing in the next meeting of the GST Council next month and the indication that the remaining issues pertaining to GST application and administration will be resolved speedily, the tax reform is set to yield larger gains for the economy.

“The GST council has followed a pragmatic policy by bringing down the rates gradually taking into consideration the revenue realisation and affordability and this will stabilise and strengthen GST further. The Government has been proactively engaging with various sectors and I am confident that going forward the Council would continue to address issues,” said Sandip Somany, President, FICCI.