From cancer treatment drugs to food and beverages along with movie tickets, the Goods and Services Tax Council approved lower rates on a few items. It, however, agreed to tax online gaming at 28% on the full face value in a setback for the industry.
The 50th GST Council meeting in New Delhi on Tuesday voted on several of the fitment committee recommendations, lowering GST rates for certain items, measures to ease trade and ways to streamline compliance.
What Gets Cheaper
Food & Beverages purchased Along With Movie Tickets
Currently, food and beverages attract 18% tax on a par with restaurant services. The new rules would mean this would effectively come down to 5% when purchased with the ticket.
"Where the sale of cinema ticket and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply," a release said.
The items will continue to attract 18% GST if it is supplied as a service or sold independently of the cinema-viewing experience.
Cancer Drugs Exempted From 12% IGST
The GST Council recommended a tax exemption on cancer-related drugs, medicines for rare diseases and food products for special medical purposes. Earlier, this attracted a 12% integrated GST.
The items would receive the exemption as long as they are enlisted under the National Policy for Rare Diseases, 2021, and imported for personal use.
The exemption is being extended to FSMP when imported by 'Centres of Excellence for Rare Diseases' or any person or institution who is recommended by such listed centres of excellence, Finance Minister Nirmala Sitharaman said during a press conference after the GST Council meeting.
What Gets Costlier
28% GST On Casinos, Horse Racing And Online
In the case of casinos, the tax will be applicable on the face value of the chips purchased.
For horse racing, the tax levied will be on the full value of the bets placed with the bookmaker/totalisator.
Full value of the bets placed in case of online gaming.
The decision cames after extensive deliberation among the member ministers and following Group of Ministers' report that could not arrive at a consensus.
The council of ministers also recommended that suitable amendments be made to include online gaming and horse racing in Schedule III as taxable actionable claims.
Cess On Utility Vehicles
The additional cess levy on sport utility vehicles has been clarified to include all utility vehicles (MUVs and XUVs) if they meet the following conditions:
Length exceeding 4,000 mm.
Engine capacity exceeding 1,500 cc.
Ground clearance of 170 mm and above (in unladen condition).
It now attracts at 22% compensation cess, over and above the 28% GST rate.
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