The GST Council in its 50th meeting decided to reduce tax rates on cancer drug Dinutuximab and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases and cut GST rates on food and beverages served in cinema halls. Finance Minister Nirmala Sitharaman chaired the 50th meeting of the GST Council at Vigyan Bhawan in New Delhi today.
After the meeting, according to Mint, West Bengal Finance Minister Chandrima Bhattacharya told reporters that the council has decided to impose a 28 per cent tax on the full face value of bets on online gaming, casinos and horse racing . He also said that the Council has decided to reduce GST on food and beverages served in theatres.
Moreover, Maharashtra’s Forest, Cultural and Fisheries Minister, Sudhir Mungantiwar, reportedly told reporters that the council has also decided to do away with the distinction between skill and chance play. This means that all online games, whether they are skill-based or chance-based, will be taxed at the same rate.
According to West Bengal FM, the GST Council has approved exemption from GST on import of cancer drug Dinutuximab and Food for Special Medical Purpose (FSMP), used in the treatment of rare diseases. Currently, 12 per cent IGST is levied on individual imports of cancer drug dinutuzimab (Karziba) for personal use .
The Council has also approved reduction in GST on food and beverages served in cinema halls from 18 per cent to 5 per cent.
However, if cinema ticket sales are combined with the sale of food items such as popcorn or cold drinks, the entire supply should be handled as an overall supply and taxed at the relevant rate of the original supply, which in this case is cinema tickets.
Currently, movie tickets priced below $100 are taxed at 12 percent, while those priced above $100 are taxed at 18 percent. According to the report, the new GST rates on food and beverages served in online gaming and cinema halls will be applicable from July 18, 2023.
The Council has also approved setting up of an Appellate Tribunal to hear appeals against decisions related to GST.
The government has recently issued a notification that enables exchange of information between the Enforcement Directorate (ED) and the Goods and Services Tax Network (GSTN) under the Prevention of Money Laundering Act, 2002 (PMLA) to aid in the investigation. The notification specifically deals with sharing of information between ED and GSTN under Section 66(1)(iii) of PMLA.
Several finance ministers stress the need for discussion before finalising the decision to include GSTN under PMLA. The issue was raised by finance ministers of Delhi, Punjab, Tamil Nadu, West Bengal, Himachal Pradesh, Karnataka, Chhattisgarh and Rajasthan.
