Circular No. 201/13/2023-GST dated 1st August 2023

Key Pointers –

• 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.
• Only those services supplied by director of company or body corporate, which are supplied by him as or in the capacity of 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 (Sl. No. 6) dated 28.06.2017.
• It is hereby clarified 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.
• It is further clarified that 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.

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