New Delhi, India – The Goods and Services Tax (GST) Council has made significant decisions regarding tax rates during its 50th meeting. The council, chaired by Union Finance Minister Nirmala Sitharaman, announced the imposition of a 28% tax on online gaming, horse riding, and casinos, marking an increase from the previous 18% GST. However, the council also introduced exemptions on anti-cancer drugs and medications for rare diseases, relieving them from the GST tax, reports the Hindu.
In a press conference held after the meeting, Finance Minister Sitharaman shared the details of the decisions. The GST Council has granted exemption from GST tax for cancer-related drugs, medications for rare diseases, and food products specifically designed for medical purposes. Furthermore, the council approved the proposal to establish Appellate Tribunals.
Sitharaman emphasized that the GST exemption would apply to satellite launch services offered by private organizations. However, online gaming and casinos will now be subject to a 28% tax on their full face value. The council also revised the GST rates for certain items. The tax rate on raw and unfried extruded snack pellets has been reduced from 18% to 5%. Similarly, the GST rate on fish soluble paste has been lowered from 18% to 5%, and the rate on imitation zari thread has been reduced from 12% to 5%.
The GST Council meeting witnessed the participation of Finance Ministers from all states and union territories, along with Minister of State for Finance Pankaj Chaudhary and senior officials from the Ministry of Finance. The decisions made during the meeting reflect the ongoing efforts to streamline tax rates and promote fairness and transparency within the GST system.
The revised tax rates and exemptions aim to strike a balance between revenue generation and facilitating access to essential healthcare and specialized medical treatments. The changes in tax rates for online gaming and casinos reflect the evolving landscape of digital entertainment and the council’s commitment to adapting the GST framework to changing market dynamics.
With the establishment of Appellate Tribunals, a mechanism for addressing disputes related to GST will be put in place, ensuring a more efficient and effective resolution process. This move is expected to enhance the overall functioning of the GST system and contribute to a more robust and stable tax environment.
The decisions taken by the GST Council underscore the government’s commitment to promoting a fair and inclusive taxation system while addressing the specific needs of various sectors. The exemptions granted to anti-cancer drugs and medications for rare diseases demonstrate the government’s focus on providing affordable healthcare options and supporting patients with critical medical conditions.
As the GST system continues to evolve and adapt, such meetings provide a platform for stakeholders to discuss and deliberate on crucial taxation matters. The decisions made during the 50th GST Council meeting will have a significant impact on various industries and pave the way for a more streamlined and equitable tax regime in India.
