Examine the implications of GST on supply of food and beverages at cinema halls. OR Examine the implications of GST on payment of honorarium to the…

It is clarified by way of a circular that: supply of food or beverages in a cinema hall is taxable as 'restaurant service' as long as: (a) the food or beverages are supplied by way of or as part of a service, and (b) 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. OR The applicability of GST on honorarium paid to Guest Anchors is as under: It is clarified that supply of all goods & services are taxable unless exempt or declared as 'neither a supply of goods nor a supply of service'. Services provided by the guest anchors in lieu of honorarium attract GST liability. However, guest anchors whose aggregate turnover in a financial year does not exceed ₹ 20 lakh (₹ 10 lakh in case of specified Special Category States) shall not be liable to take registration and pay GST.