GST cut on movie tickets! You will save this much money on film tickets after tax cut

GST cut on movie tickets! You will save this much money on film tickets after tax cut

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.

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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%.

 

Source:- financialexpress

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