In a major good news for movie lovers, the GST council in the 50th meeting chaired by FM Nirmala Sitharaman, decided to cut the GST rate on food served in cinema halls to 5 per cent. Earlier, the GST rate was 18 per cent.
Further, the Council also decided that a 28 per cent GST rate will now be levied on full value of gaming , horse racing, and casinos which comes as a drawback to online gaming companies.
GST Council members also exempted GST on key import of pharma products like cancer drug Dinutuximab, and Food for Special Medical Purposes (FSMP). Union Finance Minister Nirmala Sitharaman will hold a media briefing on the outcomes of GST council meeting.
Sudhir Mungantiwar, Maharashtra forest cultural and fisheries minister, said the council has decided to do away with the distinction of game of skill and chance in case of online gaming. Mungantiwar further said that the council has also approved setting up of appellate tribunals.
However, if the sale of cinema ticket and supply of eatables such as popcorn or cold drinks etc. are clubbed and sold together, the entire supply should be treated as composite supply and taxed as per the applicable rate of the principal supply, which in this case is cinema ticket. Currently, movie tickets below Rs 100 are taxed at 12 per cent, while those above the threshold attract an 18 per cent GST.
(This story is being updated)
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