Surat's cinema operators are grappling with confusion in the wake of the Goods and Services Tax (GST) Council's recent decision to lower the GST rate on food served in theaters. The council announced the reduction from the previous rate of 18% to 5% during its Tuesday meeting. This decision, however, hasn't impacted Surat's cinema industry as expected; instead, it has left theater operators perplexed, as they already applied a 5% GST on food items.
In the aftermath of the meeting, local theater operators have been seeking advice from their chartered accountants. Unfortunately, the lack of an official notification about this change has left them without clear answers.
The crux of the confusion lies in the fact that Surat theaters were already applying a 5% GST on food items, even before the council's decision. Theater operators have thus been left questioning the council's declaration of a reduction from 18% to 5%.
Chandravijay Gaba, proprietor of the Raj Imperial Multiplex on Surat's Varachha Road, voiced his incomprehension at the council's amendment. He stated that, in the absence of an official notification, they have struggled to gain clarity on the issue, even with the help of their accountant.
"Since the implementation of the GST, cinema halls in Gujarat have been charging 5% GST," Gaba said. He surmised that the council might have made the reduction due to different rates being applied in other states. He further clarified that when customers book tickets online, they charge only 5% GST on food orders, in line with the existing practice.
