The Central Board of Indirect Taxes and Customs (CBIC) issued a notification regarding the applicability of GST on certain services
The following has been clarified namely: -
• It is hereby clarified that services supplied by a director of a company or body corporate to the company or body corporate in his private or personal capacity such as services supplied by way of renting of immovable property to the company or body corporate are not taxable under RCM.
• It states that Only those services supplied by the director of the company or body corporate, which are supplied by him as or in the capacity of the director of that company or body corporate shall be taxable under RCM in the hands of the company or body corporate under notification No. 13/2017-CTR
• It is hereby clarified that the 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
b) supplied independently of the cinema exhibition service.
• It is further clarified that where the sale of cinema tickets and supply of food and beverages are clubbed together, and such bundle supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to the service of the exhibition of cinema, the principal supply.
[Circular No. 201/13/2023-GST]
