50th GST Council Meeting – All Updates, Highlights, Discussions & Results

50th GST Council Meeting took place today at Vigyan Sabha in the capital city Delhi chaired by Union Finance Minister, Smt. Nirmala Sitharaman. There were some interesting highlights from the GST council meeting as it crossed the “half-century mark.”

The 50th GST Council has, inter-alia, made the following recommendations relating to online gaming, enhancing input tax credit rules, utility vehicles, cancer treatment medicines & curbing fake ITC claims, among others.

The key agenda topics discussed at the 50th Council Meeting for which the rulings were passed are below:

GST on Online Gaming, Horse Racing & Casinos

The discussion on GST imposition of 28% on online gaming portals was a long overdue matter finally discussed in the 50th GST Council Meeting. As per the new ruling online gaming, horse racing, and casinos in India are liable to pay a 28% GST rate at the full face value of the chips purchased at the counter and the betting done. Also, there is no distinction between games of skill and chance.

The council decided to do away with the distinction of game of skill and chance in the case of online gaming.

The group of ministers (GOM) could not reach a common consensus, and therefore, the decision lay in the hands of the GST council today, subsequent to which the GST council finally passed the law today.

GST on Uncooked Food Items, LB Slag, Imitation Zari Threads or Yarn & Fish Soluble Paste

The GST council decided to reduce the GST rate from 18% to 5% for the following items:

• Uncooked Food Items
• LB Slag
• Imitation Zari Threads or Yarn
• Fish Soluble Paste

Cancer Treatment Medicines

Cancer treatment medicine – Dinutuximab was exempted from any IGST taxes in the GST council meeting. Earlier, a high tax of 12% IGST charge on such medication was an enormous burden on Indian citizens, so that this new amendment can act as a relief factor.

These also included medicines for rare diseases & food for special medicine purposes (FSMP).

GST on Utility Vehicles – MUVs

It was decided that MUVs would be charged at a 22% cess rate, excluding SUVs and Sedans. The criteria for a utility vehicle to be included in this segment were also laid – The vehicle has to have unladen ground clearance of 170 mm, an engine of 1500 CC & length of 4 meters.

An issue was raised by the Chairman of Tamil Nadu and Punjab to exclude SUVs and Sedans in this category, and a lengthy discussion was held, and the GST rate on SUVs and Sedans remained the same as before.

GST on Food & Beverages at Cinema Hall

It was confirmed that the GST rate levied on food & beverages served at cinema halls in India would be 5% same as the other restaurants & food serving places.

GST on Satellite Launch Services

The satellite launch services being provided by private players will be exempted from GST charges of any kind, providing a sigh of relief to the private players in this segment.

GST on Chewing Tobacco

The Union Finance minister also clarified that there was a need to make some technical changes in chewing tobacco. This meant aligning the new GST mandate on the compensation cess on chewing tobacco items which will now return to the pre-RSP mandate.

IT System Reforms

A presentation was made on IT system reforms during the meeting of the GST Council members held earlier today. “GST Council’s discussions today on online gaming were substantive. The Council will ensure it is in touch with the IT ministry. We will align with the regulation the ministry brings in,” she said.

GST Appellate Tribunal (GSTAT)

During the meeting, a comprehensive plan was formed to establish the GST appellate tribunal with its principal branch in the capital city, Delhi.

Revenue Secretary, Shri. Sanjay Malhotra said that GST appellate tribunal should start functioning in this fiscal year. In the first phase, the tribunals will be set up mainly in the state capital cities.

GSTN Registration Mandate

“Private bank account details of the person seeking GST registration will now be mandatory,” CBIC Chairman, Shri. Vivek Johri said. “The pilot of the biometric authentication for GST registration is put on a formal footing,” he added.

Also added by the Revenue Secretary, Shri. Sanjay Malhotra was Rs 17,000 crore tax evasion was found in the drive taken by the GST council along with 17,000 bogus companies.

Also present at the 50th GST Council Meeting were MoS(F) Shri Pankaj Chaudary, FMs of States & UTs, RS Shri Sanjay Malhotra, Chairman CBIC Shri Vivek Johri, Board Members & senior officers from DoR, CBIC, State/UTs, GSTPW & GSTN.

As the meeting progressed, a rather long debate ignited between the honorable Union Minister and her Delhi counterpart Atishi Marlena. The topic of this discussion was the issue of bringing the GST system under the ambit of the Prevention of Money Laundering Act (PMLA), which lets ED prosecute small businesses for GST violations. At least 4 states disapproved of this mandate in the GST council meeting, with Aam Aadmi Party-ruled states being the key opposers of this ruling.

As per the new ruling, the ED (enforcement directorate) will get access to the details of the GSTN, which was earlier excluded from the list of entities shared with it.

Just before the 50th Council Meet, the Union Minister released a special cover and customized stamp in the morning. The Special Cover and customized My Stamp was presented to the Union FM Smt. Nirmala Sitharaman by the Chief Post Master General, Delhi Circle at India Post Office.

Similarly, a short film titled “GST Council – 50 steps towards a journey” was also released on the occasion of the 50th meeting of the GST Council in New Delhi today.

This was an essential event for the Indian GST as it completed the half-century mark, and the amendments done in the GST mandate since its inception were of great significance.