It’s good news for moviegoers. After a long wait, the Goods and Services Tax (GST) Council finally decided to cut tax levied on movie tickets, which is also a positive move for the film industry. But do you know how much money you are going to save because of reduced tax? Well, here’s the calculation.
The all-powerful council, headed by the Union Finance Minister Arun Jaitley and comprised of state counterparts, decided to reduce GST on movie tickets below Rs 100 from 18% to 12% and above Rs 100 from 28% to 18%.
Due to the reduction, a family of four can save up to Rs 25 on tickets below Rs 100 and Rs 87 on tickets with base price Rs 195 per ticket, a calculation by Care Ratings showed.
If the base price of a ticket is Rs 195 per tickets. At 28% GST rate, the price goes to Rs 250 per ticket. If you’re using an online app to book the tickets, the final price (10% booking fee plus 9% CGST and 9% SGST) becomes about Rs 280 per ticket. But using the same calculation, at 18% GST rate, the final price of a ticket comes to Rs 257 per ticket, the calculation by Care Ratings showed.
This means one can save about Rs 23 per ticket and a total saving of Rs 87 for a family of four.
Similarly, for a movie ticket with a base price of Rs 95 (below Rs 100), a moviegoer will ultimately save Rs 6 or 5% per ticket, under the revised GST rate of 12% (from earlier 18%). The savings can be Rs 25 or 5% for a family of 4 individuals.
The new rates will be applicable from January 1. Besides movie tickets, GST was cut on several other items. A total of 33 items have been moved from 18% GST slab to 12% and 5%. Also, 7 items have been brought to 18%, lower from 28%. After the recent rate rationalisation, only 28 items are left in the highest tax bracket of 28%.