50th GST Council Meeting: Three Items Exempted From GST, 22 Per Cent Cess On MUVs, Says FM

Finance Minister Nirmala Sitharaman said satellite launch services provided by private organisations have been exempted from GST.

Finance Minister Nirmala Sitharaman on Tuesday said that three items have received exemption from GST rates, including medicines for rare diseases. Satellite launch services provided by private organisations have also been exempted from GST, she said. Additionally, the GST Council has approved a 22 per cent cess on MUVs, but Sedan has not been included in the list. 

Finance Minister Nirmala Sitharaman chaired the 50th meeting of the GST Council at Vigyan Bhawan, New Delhi today. She was accompanied by Union Minister of State for Finance Pankaj Chaudhary. The meeting was also attended by Finance Ministers from States and Union Territories (with legislature), along with senior officials from the union government and States.

The 50th GST Council meeting on Tuesday took decisions on various topics including deliberations on the taxation of online gaming, redefining utility vehicles, and GST rate on Food in cinema halls. 

The GoM proposals on online gambling were looked at, and the Council decided on a 28 percent GST on full face value for online gaming, horse racing, and casinos, according to Sitharaman. She also stated that the GST law will be amended to include online gaming.

On the occasion of the 50th meeting of the GST Council, Union Finance Minister N Sitharaman releases a Special Cover and customised myStamp. The Special Cover and customised myStamp were presented to the FM by the Chief Post Master General, Delhi Circle, India Post Office.

Sitharaman also released a short film titled 'GST Council - 50 steps towards a journey' on the occasion. As per the Ministry of Finance, the GST Council has so far held 49 meetings and has taken approximately 1500 decisions in the spirit of co-operative federalism. 

The GST Council has decided to tax online gaming, casinos, and horse racing at 28 per cent on the full face value of bets. The council also decided to do away with the distinction between games of skill and chance. This means that all online games, regardless of whether they are skill-based or chance-based, will be taxed at the same rate.

Finance Minister Nirmala Sitharaman said that the 28 per cent GST on online gaming and casinos was not intended to target any specific industry. The decisions were made after extensive engagement with all members, including those representing places such as Goa and Sikkim, where casinos are an important component of the tourism industry, she added.

The GST Council has also approved the exemption of GST on the import of the cancer drug Dinutuximab and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases. Currently, individual imports of the cancer medication Dinutuximab (Qarziba) for personal use are subject to a 12 per cent IGST.

The council has also approved the reduction of GST on food and beverages served at cinema halls from 18 per cent to 5 per cent.

However, if the sale of a cinema ticket is combined with the sale of eatables such as popcorn or cold drinks, the entire supply should be handled as a composite supply and taxed at the relevant rate of the principal supply, which in this case is the cinema ticket.

Currently, movie tickets costing less than $100 are taxed at 12 per cent, while those costing more than $100 are taxed at 18 per cent.

The new GST rates on online gaming and food and beverages served at cinema halls will come into effect from July 18, 2023, as per the report. 

The council has also approved the setting up of appellate tribunals to hear appeals against GST-related decisions.

GST appellate tribunals in the first phase are to be mostly set up in capital cities of states and where high court benches are there, Sitharaman said.

The Council has also decided to lower the rates on fish soluble paste and LD slag from 18 per cent to 5 per cent, and on zari thread and yarn from 12 per cent to 5 per cent.

The government has recently issued a notification enabling the 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 investigations. The notification specifically pertains to the sharing of information between ED and GSTN under section 66(1)(iii) of PMLA.

Several finance ministers raise the need for discussions before finalising the decision to include GSTN under the PMLA. The issue was raised by finance ministers from Delhi, Punjab, Tamil Nadu, West Bengal, Himachal Pradesh, Karnataka, Chhattisgarh, and Rajasthan.

The finance ministers of Delhi and Punjab highlighted the matter of GSTN inclusion under the Prevention of Money Laundering Act, according to Finance Minister Sitharaman. She said that the officials explained to them after they addressed their concerns.