Food in cinema halls to be cheaper after GST council agrees to tax cut

The GST Council has approved several proposals, including reducing the tax on food served in cinema halls and exempting tax on certain life-saving drugs.

Published on: Jul 11, 2023, 19:35:50 IST

By HT News Desk

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The goods and services tax (GST) Council on Tuesday agreed to a slew of proposals at its 50th meeting, including slashing the tax on food served in cinema halls and exempting the tax on the import of some life-saving drugs. The Council, comprised of state finance ministers and chaired by the Union finance minister, has decided to cut the tax on food served in cinema halls to five per cent from 18 per cent.

50th GST Council meeting was held on Tuesday.

“It has been clarified today by the (GST) Council that food and beverages that one consumes in cinema halls shall have 5 per cent GST, not 18 per cent,” said Sanjay Malhotra, Revenue Secretary.

Speaking to reporters in New Delhi, West Bengal finance minister Chandrima Bhattacharya said the Council has approved the exemption of GST on the import of cancer drug Dinutuximab, and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases.

She said the Council has also agreed to levy a 28 per cent tax on online gaming, casinos and horse racing and the tax would be levied on full face value.

"GST Council has decided that online gaming, casinos and horse racing will be taxed at 28 per cent at entry point on full face value of bets," she told reporters.

Sudhir Mungantiwar, minister from the state of Maharashtra, said the tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance.

"This means that GST will be applicable to gross revenue/total prize pool," Reuters quoted Roland Landers, CEO of The All India Gaming Federation, as saying. “We believe this decision by the GST Council is unconstitutional, irrational, and egregious.”

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HT News Desk
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