Online gaming to F&B at cinema halls: Here's what got cheaper and costlier after 50th GST Council meeting
The GST Council also lowered the service tax levied on food and beverages consumed in cinema halls to 5 per cent and tweaked the definition of an SUV for attracting a cess over and above the GST rate
- Jul 11, 2023,
- Updated Jul 12, 2023 7:54 AM IST
The 50th GST Council meeting, held on July 11, 2023, made a number of recommendations on changes to GST tax rates, according to a press conference by the Finance Ministry
“We have offered exemption on GST for satellite launch services provided by private organisations. Online gaming, horse racing and casinos will be taxed at 28% (all three activities) and they will be taxed on full face value,” said Union Finance Minister Nirmala Sitharaman.
The panel, headed by the Union Finance minister and comprising of representatives of all states and UTs, also lowered the service tax levied on food and beverages consumed in cinema halls to 5% and tweaked the definition of an SUV for attracting a cess over and above the GST rate.
Sitharaman said presently the definition of an SUV for levy of cess includes four parameters -- should be popularly known as SUV, should be of length of 4 meters or above and engine capacity of 1,500 cc and above, and unladed ground clearance of minimum 170 mm.
Now, the SUV definition will include only the length (4 meters and above), engine capacity (1,500 cc and more), and ground clearance (unladed clearance of 170 mm and more), she said.
On the tax levied on food and beverages served in cinema halls, the GST Council decided to levy 5% GST, equivalent to the tax on restaurants, and not 18% as is applicable on cinema halls.
One of the most significant changes is the reduction of the rate on uncooked/unfried snack pellets, by whatever name called, to 5%. This is a welcome move for businesses in the food processing sector, as it will reduce their costs and make their products more competitive.
“GST rates on uncooked/unfried extruded snack pallets brought down from 18% to 5%; on fish soluble paste, rates have been bright down to 5% from 18 pe cent; rates on imitation zari threads brought down to 5% from 12%,” added Sitharaman.
The GST Council also made a number of other recommendations on changes to GST tax rates, including: Exempting IGST on Dinutuximab (Quarziba) medicine when imported for personal use, exempting IGST on medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases when imported for personal use, clarifying that supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under reverse charge mechanism, reducing GST on LD slag from 18% to 5%, regularising the matters relating to trauma, spine and arthroplasty implants for the period prior to July 18, 2022, reducing the GST rate on fish soluble paste from 18% to 5%.
Recommendations were also made in favour of regularising the matters relating to dessicated coconut for the period July 1, 2017 to July 27, 2017, notifying an earlier ad valorem rate for pan masala, tobacco products, etc., where it is not legally required to declare the retail sale price, including RBL Bank and ICBC bank in the list of specified banks for which IGST exemption is available on imports of gold, silver, or platinum , regularising the issues relating to GST on plates and cups made of areca leaves prior to October 1, 2019, and regularising the issues relating to GST on biomass briquettes for the period July 1, 2017 to October 12, 2017.
The GST Council's recommendations are a welcome step towards simplifying the GST tax regime and making it more efficient. They will benefit businesses and consumers alike.
The council is expected to issue a notification detailing the changes in the coming days.
Also Watch | As Foxconn scraps chip JV with Anil Agarwal-led Vedanta, here's a timeline of the JV and its undoing
The 50th GST Council meeting, held on July 11, 2023, made a number of recommendations on changes to GST tax rates, according to a press conference by the Finance Ministry
“We have offered exemption on GST for satellite launch services provided by private organisations. Online gaming, horse racing and casinos will be taxed at 28% (all three activities) and they will be taxed on full face value,” said Union Finance Minister Nirmala Sitharaman.
The panel, headed by the Union Finance minister and comprising of representatives of all states and UTs, also lowered the service tax levied on food and beverages consumed in cinema halls to 5% and tweaked the definition of an SUV for attracting a cess over and above the GST rate.
Sitharaman said presently the definition of an SUV for levy of cess includes four parameters -- should be popularly known as SUV, should be of length of 4 meters or above and engine capacity of 1,500 cc and above, and unladed ground clearance of minimum 170 mm.
Now, the SUV definition will include only the length (4 meters and above), engine capacity (1,500 cc and more), and ground clearance (unladed clearance of 170 mm and more), she said.
On the tax levied on food and beverages served in cinema halls, the GST Council decided to levy 5% GST, equivalent to the tax on restaurants, and not 18% as is applicable on cinema halls.
One of the most significant changes is the reduction of the rate on uncooked/unfried snack pellets, by whatever name called, to 5%. This is a welcome move for businesses in the food processing sector, as it will reduce their costs and make their products more competitive.
“GST rates on uncooked/unfried extruded snack pallets brought down from 18% to 5%; on fish soluble paste, rates have been bright down to 5% from 18 pe cent; rates on imitation zari threads brought down to 5% from 12%,” added Sitharaman.
The GST Council also made a number of other recommendations on changes to GST tax rates, including: Exempting IGST on Dinutuximab (Quarziba) medicine when imported for personal use, exempting IGST on medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases when imported for personal use, clarifying that supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under reverse charge mechanism, reducing GST on LD slag from 18% to 5%, regularising the matters relating to trauma, spine and arthroplasty implants for the period prior to July 18, 2022, reducing the GST rate on fish soluble paste from 18% to 5%.
Recommendations were also made in favour of regularising the matters relating to dessicated coconut for the period July 1, 2017 to July 27, 2017, notifying an earlier ad valorem rate for pan masala, tobacco products, etc., where it is not legally required to declare the retail sale price, including RBL Bank and ICBC bank in the list of specified banks for which IGST exemption is available on imports of gold, silver, or platinum , regularising the issues relating to GST on plates and cups made of areca leaves prior to October 1, 2019, and regularising the issues relating to GST on biomass briquettes for the period July 1, 2017 to October 12, 2017.
The GST Council's recommendations are a welcome step towards simplifying the GST tax regime and making it more efficient. They will benefit businesses and consumers alike.
The council is expected to issue a notification detailing the changes in the coming days.
Also Watch | As Foxconn scraps chip JV with Anil Agarwal-led Vedanta, here's a timeline of the JV and its undoing