The 50th meeting of the Goods and Services Tax (GST) Council, chaired by the Union Finance Minister, recently concluded, making significant decisions that aim to streamline and enhance the GST framework in India.
Uniform Tax on Online Gaming and Horse Racing:
In a move to bring uniformity to the taxation of online gaming, casinos, and horse racing, the GST Council approved the imposition of a 28% tax on the full “face value” of bets. This decision aligns these activities with the taxation framework for betting and gambling. By ensuring a consistent tax rate, the Council aims to create a level playing field and eliminate disparities in the tax treatment of similar activities.
Exemption of GST on Cancer Drug Import:
Addressing the healthcare sector’s needs, the GST Council decided to exempt the import of the cancer drug Dinutuximab from GST. This exemption will make the drug more accessible and affordable for patients in need. Additionally, the Council also exempted Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases from GST. These decisions reflect the Council’s commitment to supporting the healthcare industry and promoting affordable treatment options for critical illnesses.
Establishment of Appellate Tribunals:
To enhance the dispute resolution mechanism for GST-related matters, the GST Council recommended the establishment of appellate tribunals. Responding to demands for state-wise benches, the Council approved the phased setup of 40 benches across various states. This move aims to provide a decentralized approach to resolving GST disputes and ensure timely and effective resolution. The appellate tribunals will play a crucial role in maintaining transparency and fairness in GST-related cases.
Revised Tax Rates for Restaurants inside Cineplexes:
Recognizing the impact of the GST on the entertainment sector, the Council decided to revise the tax rates for restaurants located within Cineplexes. Previously, these establishments were taxed at 18%, but the revised rates will attract a reduced GST rate of 5%. This decision aims to promote the growth of the hospitality sector and make dining experiences within Cineplexes more affordable for consumers. The revised tax rates are expected to boost the overall entertainment industry and contribute to its economic recovery.
Role and Composition of the GST Council:
The GST Council, established under Article 279A of the Indian Constitution, is responsible for recommending tax rates, principles of supply, exemptions, and other crucial aspects related to GST. Chaired by the Union Finance Minister, it comprises ministers nominated by state governments, ensuring representation from all regions. The Council plays a pivotal role in formulating policies, making decisions, and administering the GST system in India. Its mandate includes maintaining a harmonized tax structure, addressing industry concerns, and promoting uniformity and transparency in taxation across the country.
