With reference to latest amendment, Examine the implications of GST on supply of food and beverages at cinema halls in the context of CGST Act, 2017.

The applicability of GST on supply of food and beverages in cinema halls has been clarified by the CBIC vide Circular No. 201/13/2023 GST dated 01.08.2023. It explains that eating joint is a wide term which includes refreshment or eating stalls/ kiosks/ counters or restaurant at a cinema also. The cinema operator may run refreshment or eating stalls/kiosks/ counters or restaurant at cinema hall themselves or they may give it on contract to a third party. The customer may like to avail the services supplied by these refreshment/snack counters or choose not to avail these services. Further, the cinema operator can also install vending machines, or supply any other recreational service such as through coin-operated machines etc. which a customer may or may not avail. Accordingly, 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.