50th GST Council Reduces Tax On 4 Items, Imposes 28% On Online Gaming

The GST (Goods and Services Tax) Council issued numerous crucial decisions in the GST system of various industries in India during its 50th Council meeting in New Delhi on Tuesday. Union Finance Minister Nirmala Sitharaman announced the deliberations during a news conference, saying that GST rates have been reduced on four commodities.

Rates on four goods, including fish soluble paste and LD slag, have been reduced from 18 per cent to 5 per cent, according to Nirmala Sitharaman.

Three commodities, including medicines for uncommon disorders, have been exempted from GST. Cancer medicines are free from GST for personal use and import.

The GST exemption for cancer medicine Dinutuximab and Food for Special Medical Purposes (FSMP) used in the treatment of rare disorders has been granted by the Council.

The GST council resolved to reduce the GST rate on meals supplied in cinema halls to 5 per cent, which is great news for moviegoers. Previously, the GST rate was 18 per cent.

The GST Council also voted to impose a 28 per cent tax on online gaming, casinos and horse racing, with the tax levied on full face value. The GST statute will be amended to specify that these three supplies, like lottery and betting, are not actionable claims.

In the instance of online gaming, the council has resolved to do away with the distinction between skill and chance games. A 28 per cent tax would be paid on the total face value of bets.

Roland Landers, CEO at the All India Gaming Federation said, “We believe this decision by the GST Council is unconstitutional, irrational and egregious. It ignores over 60 years of settled legal jurisprudence and lumps online skill gaming with gambling activities.

“It will wipe out the entire Indian gaming industry and lead to lakhs of job losses and the only people benefitting from this will be anti-national illegal offshore platforms,” Landers added.

Ankur Gupta, Practice Leader - Indirect Tax at SW India said, “In most countries, the online gaming industry is taxable more or less at par with the current taxability of 18 per cent, therefore, it’s a disadvantage for Indian game companies if the taxability moves to 28 per cent.”

The formation of appellate tribunals has also been approved by the council.

Maharashtra would receive four GSTAT benches in the first phase and three more in the second phase. West Bengal has consented to host two GST Appellate Tribunal benches in Kolkata.

The GST Council provides as a venue for collaboration between the Central and State governments. The Union Finance Minister (as Chairperson), the Union Minister of State responsible for Revenue or Finance (as a member) and the Minister in charge of Finance, Taxation or any other Minister selected by each State Government are its members.

Earlier, Finance Minister Nirmala Sitharaman made some specific announcements:

The GST Council, a constitutional body, is in charge of making recommendations on the implementation of the Goods and Services Tax (GST) in India. The GST Council held its inaugural meeting on 22-23 September 2016 and since then, it has met on a regular basis to discuss and make decisions on various GST-related issues.

Finance Minister Nirmala Sitharaman launched a short film titled ‘GST Council - 50 Steps Towards a Journey’ at the start of the meeting in the national capital.

The Council has made about 1,500 decisions in 49 meetings so far in the spirit of cooperative federalism, according to Nirmala Sitharaman’s office.

“The 50th meeting is a landmark that indicates the success of cooperative federalism and the establishment of a good and simple tax regime,” reads the tweet.

According to the finance ministry, Sitharaman also released a Special Cover and customised ‘myStamp,’ which were presented to her by the Chief Post Master General, Delhi Circle India Post Office.