GST: Food & drinks in Theatre Reduced...!

The GST Council decided to decrease the GST rate on food and drinks sold in movie theaters to 5% during its 50th meeting, which was presided over by FM Nirmala Sitharaman. Without a doubt, this is fantastic news for moviegoers. It should be mentioned that the previous GST rate on food and beverages served in restaurants was 18%, but it has now been decreased.

According to finance minister Nirmala Sitharaman, the all-powerful Goods and Services Tax (GST) Council resolved on Tuesday to levy a 28 percent tax on the sales of online gambling enterprises, horse racing, and casinos.

The GST rate has been reduced to 5% for four goods. In addition, the council exempted certain imported pharmaceutical items from GST. The primary focus of the GST Council meeting is the 28% tax imposed on the whole value of online gaming, which is expected to be a setback for Indian online gamers. The Revenue Secretary also addressed concerns over ED influence in GSTN.

A big setback for the internet gaming business has been the imposition of a 28% GST rate on the total value of gambling, horse racing, and casinos. Furthermore, the GST exemption was extended to imports of major pharmaceutical commodities such as the cancer medication rituximab and food for special medical purposes (FSMP).

POINTS TO NOTE:

• The GST exemption for cancer-related pharmaceuticals, medicines for uncommon diseases, and food goods for particular medical uses was granted by the council.
• The council agreed to lower the GST rate on four products. These are

1. Uncooked, unfried, and extruded snack palettes to a GST rate of 5% from 18%,
2. Fish soluble paste to a GST rate of 5% from 18%,
3. LD slag to be on par with blast furnace slag, GST changed from 18% to 5%, and
4. Imitation Zari thread brought down from 12% to 5%.

• The GST council also decreased the levy on snacks supplied at movie theaters from 18% to 5%. According to the council, it was determined to clarify that the supply of food and beverages in movie halls is taxed as restaurant service.

• In the case of online gaming, the GST council has decided to do away with the distinction between a game of skill and a game of chance. It imposed a 28% GST tax on the whole value of internet gambling, casinos, and horse racing. In the case of casinos, tax will be levied on the face value of the chips purchased, on the entire value of bets placed with a bookmaker/totalisator in the case of horse racing, and on the total amount wagered.