50th GST council meet

50th GST council meet

News: The 50th meeting of the Goods and Services Tax(GST) Council was held under the chairmanship of the Union Finance Minister.

What is GST council?
•  Article 279A of the constitution enables the formation of the GST Council by the President to administer & govern GST.
• The Union Finance Minister of India is a Chairman of the GST Council. Ministers nominated by the state governments are members of the GST Council.
• The council is devised in such a way that the Union Government has 1/3rd voting power and the States have 2/3rd. The decisions are taken by the 3/4th majority.
• The council is responsible for recommending rates of tax, period of levy of additional tax, principles of supply, the threshold for exemption, floor level and bands of taxation rate, special provisions to certain states, etc.

Key Decisions taken at 50th council meet:
•  Tax on food and beverages in Cinema Halls - The GST on restaurants inside Cineplex will attract 5% GST against 18% earlier. Currently, movie tickets below Rs 100 were taxed at 12%, while those above the threshold attracted 18% GST.
• GST on Online Gaming - The GST Council has approved the imposition of a uniform 28% tax on full “face value” of bets involving online gaming, casinos and horse racing. This will bring them on a par with betting and gambling. Currently, most online gaming platforms pay an 18 per cent tax on the commission collected for each game.
• Exempted GST on cancer drugs - GST Council has decided to exempt GST on import of cancer drug Dinutuximab, and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases. Currently, the drug attracts a 12% integrated GST.
• Appelate Tribunals - The council has recommended setting up of a mechanism for appellate tribunals. Demands for state-wise benches were presented by various states, and the Council approved setting up of as many as 40 benches in phases.