New Delhi | Cinema and multiplex operators have urged the government to put film tickets priced below Rs 300 under the lowest 5 per cent slab under the new GST regime.

The move will make cinema viewing more affordable for masses and help the film exhibition industry, which is facing financial difficulties since the pandemic, the Multiplex Association of India (MAI) said.

Under the current GST regime, cinema tickets that are priced over Rs 100 are put under a GST slab of 18 per cent and below that under 12 per cent.

"We are recommending that the Rs 100 slab be raised to Rs 300, so ticket prices till Rs 300 should attract 5 per cent GST, and anything higher than Rs 300 should attract 18 per cent GST," MAI President Kamal Gianchandani told PTI.

According to Gianchandani, the slab of Rs 100 is now considered a low number, and this point was represented to the finance ministry and the I&B ministry, but in the last 7.5 years, it has not changed.

"Rs 300 slab will make cinema tickets more affordable," he said, adding that it will also infuse confidence in the exhibition sector, the incumbent players need that boost, in order to accelerate the growth rate.

He further said the average ticket price in India is around Rs 170-175 in the country.

"... if the government accepts our recommendation of keeping ticket prices below Rs 300 at a 5 per cent level, you should expect a reduction of at least... 20-25 odd rupees in the average ticket price," he said.

MAI, which claims to represent over 9,000 screens, of which 4,000 are multiplex screens and 5,000 single screens, said the cinema exhibition industry is a "fit case" and "ideal mandate" for GST rationalisation.

The food & beverages in cinema halls are treated as "restaurant service without input tax credit (ITC)" and, according to MAI, this blocks credit on inputs like ingredients, packaging, utilities, and services.

"All inputs that we purchase from our partners and vendors, we are not able to set off the GST that we pay on it, towards our output GST, so currently there is inefficiency, complexity existing in the GST structure as far as the F&B part of our business is concerned," he said.

By giving the ITC, the GST rate structure will become simpler and compliance will become better than what it is today, he said.