This circular provides guidance on two specific GST issues. It clarifies that when a director supplies services to a company in a personal capacity, such as renting immovable property, these are not covered under reverse charge. Reverse charge applies only when the director provides services in the capacity of a director, as specified in Notification 13/2017.

It also clarifies the GST treatment for food and beverages supplied in cinema halls. Such supplies qualify as restaurant services and attract the applicable restaurant rate when the food is supplied independently of the cinema exhibition. However, if food and beverages are bundled with the cinema ticket in a manner that forms a composite supply, GST will apply at the rate applicable to the principal supply, which is the cinema exhibition service.