INSUBCONTINENT EXCLUSIVE:
While the GST Council has decided to lower the levy on food and beverages sold at theatres to 5% from 18%, the benefit will only accrue if
movie, or giving access to the cinema hall, which is chargeable at 18% tax
Food happens to be incidental, and billing is done in a consolidated way
Central Board of Indirect Taxes and Customs chairman Vivek Johri told TOI.The top official suggested that the principle will apply even if
the ticket is bought online
While the GST Council has reduced the rate on food and beverages to bring it in line with the levy in restaurants, it is now for cinema
halls to pass on the benefit to consumers, something that authorities will have to keep an eye on.
