• 12 Jul 2023 05:51 PM
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GST Council reduces tax on food served in cinema halls to 5%; check details

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The GST Council, in its 50th meeting today decided to reduce tax on food served in cinema halls from 18 per cent to five per cent.

The GST Council, in its 50th meeting today decided to reduce tax on food served in cinema halls from 18 per cent to five per cent.

GST Council reduced tax on food served in cinema halls to 5 per centPremium
GST Council reduced tax on food served in cinema halls to 5 per cent

The goods and services tax (GST) council at its 50th meeting on July 11 decided to reduce the tax on food served in cinema halls to five per cent from 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.

Catch all live updates of GST Council Meeting outcome here

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 ₹100 are taxed at 12 per cent, while those above the threshold attract an 18 per cent GST.

The GST Council is chaired by finance minister Nirmala Sitharaman and comprises a panel of state representatives.

Earlier today, financial minister Nirmala Sitharaman released a Special Cover and customised myStamp on the occasion of the 50th GST Council meeting. The Special Cover and customised myStamp was presented to the finance minister by the Chief Post Master General, Delhi Circle.

So far, the GST Council has held 49 meetings and its decisions have had a significant impact on the GST implementation and its rate-setting agendas in India.