The GST Council has cleared the recommendation to reduce GST on food and beverages served in cinema halls to 5%. The rate applicable currently is 18%. The 13% reduction will be a relief to the patrons.
The change in rate seems to be confusing the cinema trade because the rate, according to the exhibition sector, has been 5% only. A cinema owner told Information, “We have been charging 5% on food items. It is not clear what the GST Council means when it says that it has reduced the GST rate on food items sold in cinema halls from 18% to 5%.”