The 50th GST Council Meeting chaired by Smt. Nirmala Sitharaman concluded on 11th July, 2023. In other words, the GST Council meetings has managed to cross half a century already. And, to mark this milestone of the 50th GST Council meeting, the Chairperson released a short video film titled ‘GST Council- 50 steps towards a journey’ in the presence of the Council members.
50th GST Council Meeting: Key Highlights
Cancer related drugs to be exempted from GST
Through the 50th GST council, there is an exemption from GST on cancer drugs, medicines for rare diseases, and food products for special medical purposes.
Reduction of GST Rates on certain items
There is a reduction of GST rates on the following items:
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Reduction of GST Rates on food served in cinema halls
Now, the foods served at cinema halls will be subject to GST of 5% from 18%. As per the Council, the clarification is that supply of food and beverages in cinema halls is taxable as restaurant service if
(a) there is supply by way of or as part of a service and
(b) supply is independently of the cinema exhibition service.
Where there is a clubbing of sale of cinema ticket as well as supply of food and beverages, and such 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. Accordingly, 5% GST will be applicable.
Also Read: Various Types of Supply Under GST
Levy of GST on online games
Apart from the above, the Council has decided to do away with the distinction of game of skill and chance in the case of online gaming. Accordingly, GST @28% will be applicable on online gaming, casinos as well as horse racing.
Also Read: Do you know about the Tax on Prize Money in India?
GST exemption on satellite launching services
There will be GST exemption on satellite launching services that the ISRO, Antrix Corporation Limited and New Space India Limited (NSIL) provide. Further, the private organisations may also avail themselves of this exemption.
Taxability of services by the director of the company
The services that the director of a company supplies to the company either in his personal or private capacity will not be taxable under RCM.
Also Read: GST on Director’s Remuneration on RCM basis
Continuation of Relaxations in Form GSTR-9 & GSTR-9C
Lastly, the Council recommends that the relaxations of FY 2021-22 in respect of various tables of FORM GSTR-9 as well as FORM GSTR-9C will continue 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, will continue for FY 2022-23 also.