GST slashed on movie snacks? It was always 5%, say cinemas - TOI Etimes

On Tuesday, the GST (Goods and Services Tax) Council approved several proposals, including clarifying that the tax on food served in cinema halls will be 5% and not 18%. Does that mean your popcorn, pizza and burger will cost less? Well, no. Before Tuesday, there was no clarity on how much GST was to be levied on food served at cinemas and exhibitors across the country were levying 5%, as they consider F&B sold in cinemas similar to restaurants, where 5% GST is charged.
CINEMAS WERE ALREADY CHARGING 5% GST ON FOOD ITEMS, SO WHY THE CLARIFICATION?
Industry insiders say that in the last two years, several state governments / local bodies were lobbying to apply different GST rates on different food items in cinema halls. To get clarification, the MAI (Multiplex Association of India) made multiple representations to the GST Council in the last year.
ORDERING TICKET + FOOD COMBO ONLINE? YOU’LL BE PAYING MORE GST
The 5% GST on food however is only when you order the food at the cinemas. Movie tickets that cost below ₹100 have 12% GST, while those above ₹100 have 18% GST. So when cinemas offer online combo options of food and movie, then the GST is charged on the combo amount, which is 18%. Industry experts advise people to order food at cinemas and not online – to avoid the higher GST.
CINEMA F&B TAX SAME AS RESTOS: GST COUNCIL
The notification by the GST Council says that “ It has been decided to clarify that supply of F&B in cinema halls is taxable as restaurant service,” which is 5%. The exception to this “where the sale of cinema ticket and supply of F&B are clubbed together. . . the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply,” which is 18% for tickets priced above ₹100.

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GST slashed on movie snacks? It was always 5%, say cinemas - TOI Etimes
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