GST cut on movie tickets to boost revenue growth of multiplex operators

Listed players PVR, Inox Leisure to benefit from higher footfalls, ad revenue

For a sector that was at the wrong end of multiple regulatory and legal worries, the cut in the goods and services tax (GST) on movie tickets is a welcome relief. On Saturday, the GST Council cut tax rates to 12 per cent on tickets priced below Rs 100 from 18 per cent earlier and to 18 per cent for tickets priced above that from 28 per cent. The stocks of multiplex operators PVR and Inox Leisure were up in early trade on Monday but displayed divergent trends at close with Inox gaining 3.4 per cent while PVR was down