SELECT DECISIONS OF 50TH GST COUNCIL MEETING

The 50^th meeting of GST Council was held on 11.07.2023. In the 50^th Council meeting, a short film on ‘GST Council – 50 steps towards a journey’ was released, besides release of a special cover ‘My stamp’ of Indian post office. The Council took various steps and measures towards trade facilitation and streamlining the GST compliances which, inter alia, include few tax rate changes on goods and services, acceptance of report of Group of Ministers on GST on casinos, race courses and online games and deciding rate of 28% thereon, approval of GSTAT rules for appointment, classifications on various issues, recovery of tax and interest under rule 88C(3), mechanism for differences in ITC between forms 2B and 3B, registration, returns, compensation cess on SUVs, exemption from IGST on certain imported medicines, extension of date for amnesty scheme notified in March, 2023, extension of exemption for filing form GSTR-9 / 9C, directors services in personal capacity not to be covered under reverse charge and so on.

Some of the major decisions are as follows:

GST on online gaming

• GST Council in its 50^th meeting held on 11.07.2023, approved the recommendations of Group of Ministers on taxation of online gaming, race courses etc.
• GST shall be applicable on horse races, casinos and online gaming
• GST law shall be amended to include online gaming and horse races in Schedule-III so as to be taxed as actionable claims.
• All such activities shall be taxed at an uniform rate of 28 percent GST
• Tax shall be levied on full face value of chips purchased (casino) or full value of bets placed (horse race, online games) and not on the fees part, if any.
• Online gaming to cover both- games of skills and games of chance with no distinction between them.
• 28% GST on online gaming will not be retrospective.
• Amendment in GST law may take some time as all the states will have to pass the amendment law.

GST on F&B Supplies in Cinema

• If supplied as bundled services with ticket (composite supply)- Taxed @ 18 / 12% based on cost of ticket as supply of cinema exhibition.
• F & B, if supplied individually (not clubbed with ticket)- Taxed @ 5% as restaurant services.

• Would apply to supply of both - food and beverages.
• Cinema hall canteen would be considered an restaurants and 5% GST rate would apply to such supply of food and beverages (without benefit of input tax credit). 
• This is no new levy but a clarification only.

Cess on Utility Vehicles

• Amend entry No. 52B in compensation cess Notification No. 1/2017-CS (Rate) dated 28.06.2017 as amended by Notification No. 5/2017-CS (Rate) dated 11.09.2017.
• Compensation cess @ 22 percent shall now be levied on utility vehicles, by whatever name called (MUV, SUV….)
• Such utility vehicles should meet the following parameters :

• Length – exceeding  4000 mm
• Engine capacity – exceeding 1500 cc
• Ground clearance – 170 mm and above

• Ground clearance would mean ground clearance in an un-laden condition.
• Presently, in entry No. 52B (8703), only parameter is exceeding 1500 cc and condition that it is popularly known as sports utility vehicle including utility vehicle. This will stand modified for better clarity in scope.
• This shall be effective from a notified date on issuance of notification.

Exemption on supply of health care related goods

• GST Council in took decision to exempt the following goods from levy of Goods and Services Tax (IGST):

• The exemption shall come into effect after Notification is issued by CBIC.