Post Covid, Indian public is returning back to its favorite mode of entertainment i.e. watching movies on big-screen. There has been a significant increase in personal spending habits of the people in Cinema Halls despite the fact that food and beverages are significantly expensive therein. Recently, as a respite to consumers, CBIC has issued Circular No 201/13/2023-GST dated August 1, 2023 clarifying that supply of food and beverages is a separate activity of Cinema Halls and same is required to be taxed separately from sale of movie tickets, akin to provision of food by restaurants.

Vide this Article, our Partner Mr. Deepak Suneja, Managing Associate Mr. Nikhil Nagpal and Executive Ms. Hetika Goyal have tried to encapsulate the aforesaid Circular, its impact on Cinema Halls and if any disputes can arise therefrom.

Please click on the below link to read our article titled ‘Clarification on food and beverages supplied by Cinema Halls – A sweet and sour snack’

NITYA I Clarification on food and beverages supplied by Cinema Halls – A sweet and sour snack I