Eating in cinema places can be quite costly compared to other options. The prices of snacks like popcorn, nachos, candy, and soda can be significantly higher than what you would pay at a grocery store or a regular snack bar. On Tuesday, multiplex operators welcomed the GST Council’s decision to decrease the tax rates on food in theatres and drinks.
Popcorn & Food At Lesser Prices Inside Of Cinema Halls
The Goods and Services Tax (GST) Council, chaired by the Union Finance Minister and comprised of members from all states and UTs, resolved on Tuesday to reduce the service tax paid on food and drinks consumed at movie theatres to 5% from 18%. This should aid in the post-Covid resurgence of the theatre industry.
F&B (food and drinks) are a significant source of revenue for the cinema exhibition sector, particularly for multiplexes, which generate up to 35% of their revenue from this category.
According to Money Control, PVR INOX Ltd CFO Nitin Sood was quoted saying that the entire cinema industry welcomes the clarification issued by the GST Council today that food and beverages sold at the cinemas would be liable to GST at 5 per cent. This would help resolve the industry-wide issue for the sector which includes more than 9,000 cinemas across the country in avoiding disputes/ litigation from a GST standpoint, giving tax certainty and helping in the revival of the theatre business post-pandemic.
On July 11, the GST Council had its 50th meeting, which was presided over by Finance Minister Nirmala Sitharaman. The decrease in tax on food and drinks sold at movie theatres is expected to take effect on July 25, 2023.
Also Read: Watch: This Theatre Employee Has Super Cool Way Of Serving Popcorn & We’re In Awe!
Food In Theatres Used To Be A Costly Affair
Eating in cinema places can often be a costly experience due to several factors. From the prices of snacks and beverages to the additional charges for premium services, the overall cost of food and drinks at cinemas can add up quickly.
Before saving on costs, some people choose to eat before or after the movie. Additionally, premium cinemas that offer a more luxurious experience, such as those with reclining seats or dine-in options, may have higher food and beverage prices to cover the additional amenities. Speciality items or combo deals that include snacks and drinks may cost even more.
So, when are you heading to the movie halls?
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