Madhya Pradesh chief minister Mohan Yadav took to the X, formerly Twitter, to announce the decision.
“For citizens of the state to know the bitter reality of Article 370, we have decided to make the film Article 370 tax-free in Madhya Pradesh”, a post in the social media platform by Mr Yadav said.
The abrogation of Article 370 has opened doors of immense development possibilities in Jammu and Kashmir, he added.
“The movie provides an opportunity to closely understand the past and present circumstances of Jammu and Kashmir”, Mr Yadav said.
Chhattisgarh government is also most likely to declare the movie tax-free in the state, official sources said.
Chhattisgarh chief minister Vishnu Deo Sai along with his ministerial colleagues watched the movie in a cinema theatre in Raipur on Friday evening.
Mr Sai’s wife Kaushalya Devi also accompanied him to watch the film.
Article 370 featuring Yami Gautam in the lead role focuses on the rise of terrorism in Kashmir and the government’s effort to combat terrorism in the valley.
The movie was released nationwide on February 23.