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TMI BlogClarifications regarding applicability of GST on certain servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... received seeking clarifications on the following issues : 1. Whether services supplied by director of a company in his personal capacity such as renting of immovable property to the company or body corporate are subject to Reverse Charge mechanism ; 2. Whether supply of food or beverages in cinema hall is taxable as restaurant service. The above issues have been examined by GST Council in the 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany or the body corporate under Reverse Charge Mechanism. 2.2 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. Only those services supplied by director of comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied." 2. Eating joint is a wide term which includes refreshment or eating stalls/kiosks/counters or restaurant at a cinema also. 3. The cinema operator may run these refreshment or eating stalls/kiosks/counter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upply 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.
4. Difficulties, if any, in implementation of this circular may be brought to the notice of the Chief Commissioner of State tax.
Chief Commissioner of State Tax, Gujarat. X X X X Extracts X X X X X X X X Extracts X X X X
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