Here are the key highlights of the 50th GST Council meeting:

1. Finance Minister Nirmala Sitharaman chaired the GST council meeting in New Delhi in the presence of MoS (F) Pankaj Chaudhary, Revenue Secretary Sanjay Malhotra, Chairman CBIC Vivek Johri, Member GST and Member Tax Policy, CBIC among others.

2. GST council exempted cancer-related drugs, medicines for rare diseases, and food products for special medical purposes from GST tax. 

3. The council approved a GST rate reduction on four items. These are:

- Uncooked, unfried, and extruded snack palettes to a GST rate of 5% from 18%.

- Fish soluble paste to see 5% GST rate from earlier 18%.

- LD slag to be at par with blast furnace slag. It has been changed from 18 to 5%.

- Imitation zari thread brought down from 12% to 5%.

4. Also, the council reduced the GST rate to 5% on foods served in cinema halls from the earlier rate of 18%. The council said, it has been decided to clarify that supply of food and beverages in cinema halls is taxable as restaurant service as long as (a) they are supplied by way of or as part of a service and (b) supplied independently of the cinema exhibition service. Where the sale of cinema ticket and supply of food and beverages are clubbed together, and such bundled supply satisfies the test of composite supply, the entire supply will attract GST at the rate applicable to service of exhibition of cinema, the principal supply.

5. Council decided to do away with the distinction of game of skill and chance in the case of online gaming. Also, it levied a 28% GST rate on the full value of online gaming, casinos, and horse racing. Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of Horse Racing and on the full value of the bets placed in case of the Online Gaming. The changes will come into effect after an amendment in the GST law.

6. Online gaming companies are to be disappointed with the 28% tax rate. Ankur Gupta, Practice Leader - Indirect Tax at SW India said, "Ignoring the long-time demand of the gaming industry, levying a 28% tax rate on the gaming industry will be a big setback for Indian players. We will need to see the fine print of notification if any exceptions are created. We might immediately see notices being issued to the gaming players for differential tax and with this new series of litigation."

7. Giving clarity on EDs gathering information on GST network, Revenue Secretary Sanjay Malhotra after the meeting said, "Under the recent finance ministry notification, it was clarified that it will only empower our tax authorities with more information. GSTN is a recipient of information."

Malhotra added, "It was clarified that ED is not getting any information, neither it is providing any information through this notification," adding, "the Director FIU shall provide information to empower authorities wherever they feel there's chance of tax evasion or money laundering."

8. Several opposition ruled states have expressed concerns over the government's decision to allow the enforcement directorate (ED) to share information with GST Network. Earlier, FinMin introduced an amendment to the provisions of the Prevention of Money Laundering Act (PMLA), 2002, under which ED will share information on GSTN which handles the technology backbone of GST, is included in the list.

9. On the occasion of the 50th GST council meeting, Sitharaman released a short film titled 'GST Council - 50 steps towards a journey'. Also, the FM released a Special Cover and customized myStamp.

10. Earlier, Nirmala Sitharaman Office tweeted, "The 50th meeting is a milestone which indicates success of cooperative federalism and establishment of a good & simple tax regime." Prior to the 50th meet, the council has so far held 49 meetings & has taken approximately 1500 decisions in the spirit of cooperative federalism.

11. GST council decided to amend the entry 52B in compensation cess notification to include all utility vehicles by whatever name called provided they meet the parameters of Length exceeding 4000 mm, Engine capacity exceeding 1500 cc and having Ground Clearance of 170 mm & above and to clarify by way of explanation that 'Ground clearance' means Ground Clearance in un-laden condition.

12. The council decided to include RBL Bank and ICBC bank in the list of specified banks for which IGST exemption is available on imports of gold, silver or platinum and update the list of banks /entities eligible for such IGST exemption as per Annexure 4B (HBP) of Foreign Trade Policy 2023.

13. Further, the council decided that on pan masala, tobacco products etc, where it is not legally required to declare the retail sale price, the earlier ad valorem rate as was applicable on 31st March 2023 may be notified in order for levy of Compensation Cess.

14. GST exempted on satellite launch services supplied by ISRO, Antrix Corporation Limited and New Space India Limited (NSIL) to such services supplied by organisations in private sector also to encourage start ups.

15. The council has recommended the Rules governing appointment and conditions of President and Members of the proposed GST Appellate Tribunal for enabling smooth constitution and functioning of GST Appellate Tribunal. The Council also recommended that provisions of Finance Act, 2023 pertaining to GST Appellate Tribunal may be notified by the Centre with effect from August 1, 2023.

16. The council recommended that the relaxations provided in FY 2021-22 in respect of various tables of FORM GSTR-9 and FORM GSTR-9C be continued for FY 2022-23. Further, for easing compliance burden on smaller taxpayers, exemption from filing of annual return (in FORM GSTR-9/9A) for taxpayers having aggregate annual turnover upto two crore rupees, to be continued for FY 2022-23 also.

17. The council said circular to be issued to provide clarification regarding TCS liability under Sec 52 of the CGST Act, 2017 in cases where multiple E-commerce Operators (ECOs) are involved in a single transaction of supply of goods or services or both.