Entertainment tax, which previously varied across states, sometimes going up to 100 per cent, has been rationalised under the GST framework, said Union Finance Minister Nirmala Sitharaman speaking on the floor of the Lok Sabha today. While presenting the new Income Tax Bill 2025 in the Parliament, she said GST on movie tickets above Rs 100 has been reduced from 28 per cent to 18 per cent in 2018.
“The multiple GST council meetings have discussed reducing taxes on movie tickets. Earlier, in 2018, a decision had been taken that GST of 18 per cent will be charged on movie tickets of Rs 100 or above, which was 28 per cent earlier,” Finance Minister informed the Lok Sabha. She was responding to the questions raised about the film industry by the MP and former actor Jaya Bachchan.
On Wednesday, Jaya Bachchan criticised the neglect of the film industry, highlighting the closure of single-screen theatres and the decline in cinema attendance. She questioned what steps the government has taken to support the industry, noting that no reduction in entertainment tax has been implemented, further exacerbating the challenges faced by the sector.
Responding to the questions raised by Jaya Bachan, Sitharaman said, “Before the introduction of GST, entertainment services were taxed at an average rate of 30 per cent, with movie tickets subject to various entertainment taxes along with a combined 20.5 per cent VAT and service tax.”
“Additionally, food and beverages sold in theatres were also heavily taxed. In some states, entertainment tax went as high as 100 per cent, Sitharaman said. However, under the current GST regime, food and beverage services in theatres are now taxed at a much lower 5 per cent — including items sold at food stalls, even the now-famous (and often debated) popcorn,” Sitharaman said.
The Finance Minister further mentioned that the government is also taking steps to position India as a global leader in media and entertainment. “This year, India will host “Waves 2025,” the world’s first Audio-Visual Entertainment Summit, in Mumbai. The event aims to showcase Indian talent on a global stage and attract international collaborations,” she said.
Additionally, a National Centre for Excellence in Animation, Visual Effects, Gaming, Comics, and Extended Reality has been approved by the cabinet to boost digital media innovation in the country.
To facilitate international co-productions, she said, India is signing treaties with 15 countries and has streamlined the film-shooting approval process through a single-window clearance system.
