New Delhi: The Goods & Services Tax (GST) Council, in its 50th meeting under the chairmanship of Finance Minister Nirmala Sitharaman, decided to revise GST tax rates of couple of services including online gaming & eating at cineplexes. The Council made several recommendations regarding changes in the GST rates and for compliance of the same.
The Council decided to bring online gaming, horse racing and casino under 28% GST scanner.
Below is a lowdown on what would become cheaper & expensive after the latest GST rate review meet:
What Got Cheaper?
Food in Movie theatres/cineplexes
The GST Council deciding to bring down service tax levied on food and beverages served in cinema halls from 18% to to 5% came as a welcome respite for cinegoers as well as theatre owners. Presently, the movie tickets below Rs 100 are taxed at 12%, while those above this level attract a GST rate of 18%.
Uncooked food, unfried snacks will become cheaper after revised rates.
Key concession has been given on life-saving drugs. Under new guidelines, cancer treatment drugs, rare disease medicines & food meant for special medical purpose won’t invite any GST as they stand exempted from the tax regime.
What became Costlier?
Online gaming industry will face the maximum impact of revision in GST rates. Now, the online gaming will invite a GST tax of 28% and the industry is already whining about it.
Apart from online gaming, horse racing & casino are other luxury sports that have come under higher bracket of 28% tax rates.
“Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of Horse Racing and on the full value of the bets placed in case of the Online Gaming,” the finance ministry said in a statement.
Another segment that will face pressure of enhanced GST rates includes the Multi-Utility vehicles owners. They will now have to pay Rs 22 crore per GST.
