GST Council meet: Know what gets cheaper and what gets costlier

GST Council meet: The 50th GST Council meeting in New Delhi on Tuesday decided on various fitment committee recommendations, including lowering GST rates on some commodities, measures to ease trade, and ways to expedite compliance.

Know what gets cheaper

1. Food & beverages purchased with movie tickets

Food and beverages are currently taxed at 18%, the same as restaurant services. The new rules would effectively slash this to 5% when purchased with the ticket.

As per the release, "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."

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If the items are provided as a service or sold apart from the cinema viewing experience, they will continue to be subject to 18% GST.

2. Cancer drugs

The GST Council suggested that cancer-related drugs, medicines for rare diseases and food products for special medical uses be tax-free. Previously, this was subject to a 12% integrated GST.

The exemption would apply if the items are listed under the National Policy for Rare Diseases, 2021, and imported for personal use.

3. Imitation Zari thread

GST on Imitation Zari thread has been slashed from 12% to 5%.

4. Uncooked, unfried & extruded snack palettes

GST reduced from 18% to 5%

5. Fish-soluble paste

GST on fish-soluble paste has been slashed from 18% to 5%.

6. LD slag              

GST slashed from 18% to 5%

7. Private satellite launch services

Made GST free

Know what gets costlier

Casinos, horse racing and online gaming would become more expensive due to a 28% GST on full face value.

All utility vehicles will be subject to a 22% compensation cess, over and above the 28% GST.

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- With inputs from agencies

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