M/s TVR Cineplex Private Limited sells cinema hall tickets of ₹ 150 each including GST @ 18%. It also supplies food and beverages as a separate service charging GST @ 5%. During the month of August, 2023, it offered tick

As per recent CBIC Clarification Circular No. 201/13/2023 dated 01.08.2023 was issued with reference to the Explanation at Para 4 (xxxii) to notification No. 11/2017-CTR dated 28.06.2017, which states as under: It is hereby clarified that: supply of food or beverages in a cinema hall is taxable as 'restaurant service' as long as: the food or beverages are supplied by way of or as part of a service, and supplied independent of the cinema exhibition service. where the sale of cinema ticket and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply. Thus, as per the clarification above, the opinion of TVR Cineplex Limited is incorrect and it would be required to pay GST @ 18% instead of 5% on the food and beverages combined with the cinema ticket, being the principal supply, which amounts to ₹ 45 per ticket [250*18%].