Team Blitz India
NEW DELHI: The GST council has decided to levy 28 per cent tax on online gaming, horse racing and casinos and exempted cancer-fighting drugs and medicines for rare diseases from the GST regime. It also slashed the tax on food and beverages sold in cinema halls.
This was announced by Union Finance Minister Nirmala Sitharaman at a press conference after chairing the 50th GST council meeting in New Delhi. The council settled the longpending issue and decided to levy 28 per cent GST on the face value of ‘bets placed’ in online games, chips purchased at casinos and bets placed with bookmakers at horse races.
Revenue Secretary Sanjiv Malhotra said the GST will be applicable at the time of making payment for the purchase of chips or placing the bet. India’s online gaming industry is growing at $3 billion with more than 400million users at present.
Ms Sitharaman said the scope of the sports utility vehicles has been expanded to include MUVs. As per the decision, like SUVs, all kinds of MUVs or crossover utility vehicles will attract 22 per cent compensation cess.
The GST rates on uncooked, unfried extruded snack pallets have been brought down from 18 per cent to 5 per cent. The rates on imitation zari threads have been brought down to 5 per cent from 12 per cent.
The Finance Minister informed that the council has also decided to exempt GST on satellite launch services by private operators.