Buying Movie Tickets and Food as Combo- What if ?

The GST Council, in its 50th meeting, came up with several key decisions. 

One such decision was a clarification regarding the tax on food served in cinema halls, which was fixed at 5%.

Confusion arose due to the fact that cinema theatres received ‘notices’ regarding the GST being 12% (or) 18% on Combo sales on tickets which includes cost of screening and cost of food at halls.

So, what does ‘5% tax’ mean from now on ?

At present, the GST rate structure for entry tickets ( movies) 12% up to ₹100 and 18% above ₹100. Similarly for amusement parks tickets priced above ₹500 is at 18%. 

Now, when theatres offer moviegoers an online combo option of the food and the film, the GST will be on the total amount, and will, therefore, be taxed at 12% if it is more than the prescribed ticket values as the case may be.

The 5% GST on the other hand, is applicable when the food is brought separately from the movie ticket, i.e., at the cinema hall itself separately it would be classified as a stand alone  Supply of Restaurant Services instead of Composite Service of Screening a movie. 

To avoid the higher GST, therefore, movie goers are generally advised not to pre-book their snacks because Food and beverage account for more than half of (about 58% in India) the ticket price.

Well......

So when you buy them separately you pay only 12% GST for Cinema Tickets and 5% GST on food ordered.

Watch a movie with  lip smacking food............ but keep them separately while buying !!!!!!

R. SRIVATSAN,

NACIN, Chennai