Food in theatres to cost less as govt lowers tax rates from 18% to 5%

Multiplex operators on Tuesday welcomed the GST Council's decision to lower the tax rates on the food and beverages sold in cinema halls, saying it will help in the revival of the theatre business post-Covid and avoid litigations. The goods and services tax (GST) Council on Tuesday agreed to a slew of proposals at its 50th meeting, including slashing the tax on food served in cinema halls and exempting the tax on the import of some life-saving drugs. The Council, comprised of state finance ministers and chaired by the Union finance minister, has decided to cut the tax on food served in cinema halls to five per cent from 18 per cent.

“It has been clarified today by the (GST) Council that food and beverages that one consumes in cinema halls shall have 5 per cent GST, not 18 per cent,” said Sanjay Malhotra, Revenue Secretary.Speaking to reporters in New Delhi, West Bengal finance minister Chandrima Bhattacharya said the Council has approved the exemption of GST on the import of cancer drug Dinutuximab, and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases. She said the Council has also agreed to levy a 28 per cent tax on online gaming, casinos and horse racing and the tax would be levied on full face value. "GST Council has decided that online gaming, casinos and horse racing will be taxed at 28 per cent at entry point on full face value of bets," she told reporters.