PVR and Inox Leisure Shares Rise as GST Council Lower Tax on Movie Tickets

12 Jul 2023 , 02:24 PM

Shares of multiplex players PVR and Inox Leisure registered gains of up to 2% following the decision by the GST Council to lower the tax rate on movie tickets priced under Rs 100 to 18% from the previously proposed 28%. PVR’s shares rose 1.28% to Rs 1,478.40, while Inox Leisure’s shares increased by 1.82% to Rs 291.05 on the BSE exchange.

However, the tax rate for tickets over Rs 100 remains 28%. The Multiplex Association of India had previously appealed to the government to reconsider the 28% tax rate, expressing concerns about being grouped with racing, gambling, and casinos.

Finance Minister Arun Jaitley, also the Chairman of the GST Council, stated that consumers would benefit from the reduced rates. He added that while states could provide a refund of state GST on regional cinema, a centralized exemption was not possible.

In addition to the revision of cinema ticket rates, the GST Council also revised rates for 65 other items, including pickles, sauces, fruit preserves, insulin, cashew nuts, school bags, printers, cutlery, and agarbattis, based on representations from the respective industries.

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