The GST Council in India voted to cut the tax on food and beverages sold in multiplexes, change the definition of utility vehicles for the levy, and levy the maximum 28 per cent tax on the entire face value of bets in online gaming, casinos and horse racing.
The panel also exempted GST (Goods and Services Tax) on import of cancer drug Dinutuximab, and medicines used to treat rare diseases and food used in Food for Special Medical Purposes (FSMP), besides satellite launch services provided by private operators.
Instead of the 18% that many cinema halls were typically charging, food and beverages consumed in theaters will now be subject to a GST of 5%, which is comparable to the fee levied in hotels and restaurants.
For the purpose of levying a 22 per cent cess in addition to the 28 per cent GST rate, the definition of utility vehicles has been changed. Any utility vehicle with an engine size of 1,500 cc or more, a length of 4 meters or more, and a ground clearance of 170 mm or less will be subject to the cess.
Giving details of the decisions taken at the 50th Council meeting, Union finance minister Nirmala Sitharaman said the decision to levy maximum tax on online gaming and casinos was not intended to kill the industry but considering the “moral question” that it cannot be taxed at par with essential commodities.