Centre Cuts GST on Low-Cost Cinema Tickets, Clarifies Tax on Popcorn

The Central government has announced major relief for single-screen theatres and small-town cinema halls by reducing GST on film tickets priced below ₹100 from 12% to 5%. The move is expected to help struggling theatres regain audience support. Tickets priced above ₹100 will continue to attract 18% GST, leaving multiplexes and premium theatres unaffected.

The revised policy also settles the long-debated issue of popcorn taxation. Salted popcorn has been brought under the 5% slab, while caramel popcorn will be taxed at 18%. The new structure removes earlier distinctions based on packaging, ensuring uniform tax whether popcorn is sold loose or in packets.

The GST Council has also streamlined the overall framework, cutting down from four tax slabs to two—5% and 18%—to simplify compliance and boost transparency.

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