Reverse charge applicability clarified: director's personal services excluded while cinema food qualifies as restaurant service unless bundled. Tax under the Reverse Charge Mechanism applies only to services supplied by a director in his capacity as director to the company or body corporate; services supplied by a director in a private or personal capacity, such as renting immovable property to the company, are not taxable under RCM. Supply of food or beverages in a cinema hall is taxable as restaurant service if supplied by way of or as part of a service and independent of the cinema exhibition service; bundled supplies that form a composite supply will attract the GST rate of the principal supply.
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Provisions expressly mentioned in the judgment/order text.
Reverse charge applicability clarified: director's personal services excluded while cinema food qualifies as restaurant service unless bundled.
Tax under the Reverse Charge Mechanism applies only to services supplied by a director in his capacity as director to the company or body corporate; services supplied by a director in a private or personal capacity, such as renting immovable property to the company, are not taxable under RCM. Supply of food or beverages in a cinema hall is taxable as restaurant service if supplied by way of or as part of a service and independent of the cinema exhibition service; bundled supplies that form a composite supply will attract the GST rate of the principal supply.
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