50th Meeting Of GST Council:
At its 50th meeting, the Goods and Services Tax (GST) Council made changes to tax rates on various items and resolved the tax treatment for online gaming, casinos, and horse racing.
- The Council decided to levy a uniform 28% tax on the full face value of bets placed for online gaming, casinos and horse-racing.
Highlights of the Meet:
The GST Council made the following revisions to the tax rates:
- Uncooked or Unfried Snack pellets and Fish Soluble Paste: The tax rate was reduced from 18% to 5%.
- Imitation Zari Threads or Yarn: The tax rate was reduced from 12% to 5%.
- Food and Beverages Consumed Inside Cinema Halls: The tax rate was set at 5% without input tax credits, as opposed to the previous 18% on cinema services.
- Tax Treatment of Online Gaming, Casinos, and Horse Racing:
- Regardless of whether they involve skill, chance, or a combination thereof (or neither), bets and wagers made on online gaming, casinos, and horse racing activities will now attract a 28% GST levy.
- The GST laws will be amended to explicitly include online gaming within the tax framework.
Exemption from GST:
- GST Council exempts cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from GST
Establishment of GST Appellate Tribunals:
- The Council examined proposals from states to establish 50 Benches of the GST Appellate Tribunals in the country.
- The initial Benches will be set up in state capitals and locations where High Courts have Benches.
- The GST Council is a constitutional body responsible for making recommendations on issues related to the implementation of the Goods and Services Tax (GST) in India.
- As per Article 279A (1) of the amended Constitution, the GST Council was constituted by the President.
- The members of the Council include the Union Finance Minister (chairperson), the Union Minister of State (Finance) from the Centre.
- Each state can nominate a minister in-charge of finance or taxation or any other minister as a member.