Before GST Council's announcement regarding new GST on food and beverages in multiplexes encourages you to reach out for the big tub of popcorn, here are a few things you would like to know...

Mona

Cine-lovers… if you too are ecstatic about the GST Council issuing a clarification regarding tax on food served in cinema halls lately, which it said was fixed at five per cent, and hoping that you can munch on the popcorns and sip icy cola without burning a hole in pocket, well, hold your horses.

Some cheer amidst chaos

Leading multiplex chain PVR Inox has slashed food and beverage prices by up to 40 per cent after facing backlash on its rates on social media. The film exhibitor introduced food combos starting from Rs 99 from Monday to Thursday between 9 am and 6 pm, while on weekends it has offered bottomless popcorn with ‘unlimited refills’ and ‘bottomless’cold drink. “Cinephiles who plan to watch films during the weekend can claim bottomless popcorn featuring unlimited tub refills, along with attractively priced Family Meal Combos, bringing down the food and beverages (F&B) spends by as much as 40 per cent,” PVR Inox said in a statement. Earlier, a tub of cheese popcorn was available at PVR Inox for Rs 450, while 600ml soft drink would cost Rs 360.

Going by cinema insiders, they were already charging GST on food and beverages at five per cent. “Though there is yet to be any new notification to be received by cinemas, the GST charged has already been five per cent on food and beverages; 12 per cent on movie tickets of value less than Rs 100 and 18 per cent on movie tickets over Rs 100,” says film distributor Raj Juneja.

While one doesn’t mind the ticket prices and can schedule the show keeping in mind flexible prices depending on the timings and the choice between weekday and weekends — morning shows on weekdays are way cheaper — but paying exorbitantly for snacks sure pinches the pocket. Swapna Singla, a Chandigarh-based doctor and mother of three, shares, “A weekend cinema outing for us, a family of five, easily comes at about five grand. It’s just cola and popcorn I am talking about, apart from the tickets.” The family would rather wait for a film to come on OTT, “We don’t mind renting a movie even at Rs 500 or wait a few weeks. Unless it’s a Marvel or a mega release, we avoid stepping into cinema halls.”

Know it all

“The food and beverages in cinema are covered under restaurant services and the tax for that has been fixed at five per cent, which has been in practice for a while now. While the entertainment tax is at 12/18 per cent and charged depending on its ticket value,” says advocate and GST practitioner Ishan Malhotra.

When booking eatables and beverages online along with the ticket, you might have to pay increased tax, Ishan explains, “In 50th GST Council meeting they had clarified that food and beverage supplied in a multiplex shall be charged at five per cent. As reported, when the ticket combo with food and beverages is sold then it’s called mixed supply and maximum tax will be charged. But where the value of ticket and food is ascertained separately, the tax will be charged as per the applicable tax rates.”

PVR Inoxtoo clarified that it was already charging GST at five per cent on all F&B items sold at the cinemas. “This clarification will help resolve industry-wide concerns for the sector, which includes more than 9,000 cinema screens across the country, in avoiding GST-related disputes/litigation, ensuring tax certainty and revival of the theatrical business post the pandemic,” read the statement.