Context: The Goods and Services Tax (GST) Council convened its 50th meeting on July 11, announcing significant revisions and clarifications to tax rates. Additionally, the council discussed the establishment of GST Appellate Tribunals. It sought to address the concerns surrounding inclusion of the GST Network under the Prevention of Money Laundering Act (PMLA).
What is GST?
What are the decisions taken by the GST Council?
- GST on Online Gaming: The GST Council has approved the imposition of a uniform 28% tax on full “face value” of bets involving online gaming, casinos and horse racing. This will bring them on a par with betting and gambling.
- Currently, most online gaming platforms pay an 18 per cent tax on the commission collected for each game.
- Tax on food and beverages in Cinema Halls: The GST on restaurants inside Cineplex will attract 5% GST against 18% earlier.
- Currently, movie tickets below Rs 100 were taxed at 12%, while those above the threshold attracted 18% GST.
- Exempted GST on cancer drugs: GST Council has decided to exempt GST on import of cancer drug Dinutuximab, and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases. Currently, the drug attracts a 12% integrated GST.
- Tribunals: The council has recommended setting up of a mechanism for appellate tribunals. Council approved setting up 40 benches in phases as demanded by various states.
Changes In Rates
- Supply of food and beverages in cinema halls is taxable at 5%.
- If cinema ticket and food/beverage supply are bundled, the GST rate of cinema ticket applies.
- 28% GST on the value of the chips purchased in casinos.
- 28% GST on the full value of the bets placed in Online Gaming .
- Tax rate for Zari thread or yarn reduced from 12% to 5% in trade parlance.
- GST rate on LD slag reduced to 5% to encourage utilization and environmental protection.
FAQs related with GST Council
Ques 1: What is the GST Council?
Answer: GST Council makes decisions on GST issues like tax rates, exemptions, and administrative policies in India.
Ques 2: Who are the members of the GST Council?
Answer: GST Council includes Union Finance Minister (Chairperson) and Finance Ministers from each state/union territory with legislative assembly.
Ques 3: What are the key functions of the GST Council?
Answer: GST Council recommends tax rates, exemptions, thresholds, and administration for effective GST implementation in India.
GST Council’s Decisions of 50th Meeting,GST Council’s Decisions of 50th Meeting
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