Decoding the reduced rate of 5% GST on food items in cinema halls The GST rate for food served in restaurants inside a cinema complex is 5%. This is a lower rate than the 18% GST that was previously levied.

The food must be supplied independently of the cinema exhibition service in order to be taxed at the 5% rate. This means that the food cannot be clubbed and sold together with a movie ticket.

If the food is clubbed and sold together with a movie ticket, then the entire supply will be taxed as a composite supply. The composite supply will be taxed at the rate of the principal supply, which in this case is the movie ticket.

Here are some examples of how the GST will be applied to food served in restaurants inside a cinema complex: -> If a customer buys a movie ticket and a popcorn, the popcorn will be taxed at 5%.

-> If a customer buys a movie ticket and a combo meal that includes popcorn, soda, and candy, the combo meal will be taxed at 18%. The GST implications of food served in restaurants inside a cinema complex are complex, and there are many different scenarios that can occur.