The Goods and Services Tax (GST) Council has agreed to levy 28 percent tax on online gaming. After the 50th meeting of the GST Council, Union Finance Minister Nirmala Sitharaman said that we have offered exemption on GST for satellite launch services provided by private organizations. In addition, online gaming, horse racing and casino will be taxed at 28% (all three activities) and will be taxed on full face value. The Finance Minister informed that the GST rate on unbaked or fried extruded snack pellets has been reduced from 18% to 5%. The rates on fish soluble paste have also been reduced from 18% to 5%. The tax rate on imitation zari thread has been reduced from 12 percent to 5 percent.

Revenue Secretary Sanjay Malhotra said after the GST Council meeting that the Prevention of Money Laundering Act (PMLA) has nothing to do with the GST law. He said that the notification to bring GSTN information under PMLA will empower our agencies with more information on tax evasion, which they were not getting earlier.

Earlier, West Bengal Finance Minister Chandrima Bhattacharya said that the council also approved GST exemption on import of cancer drug dinutuximab and food for special medical purposes (FSMP) used in the treatment of rare diseases. "The GST Council has decided that online gaming, casino and horse racing will be taxed at the rate of 28 per cent on the full face value of betting at the entry point," he told reporters here. The change will be made to ensure that these three are not actionable claims like lotteries and betting.Maharashtra's Forest Cultural and Fisheries Minister Sudhir Mungantiwar said the council has drawn attention to the difference between a game of skill and a game of chance in the case of online gaming. It has been decided to do away with these. These will be taxed at 28 per cent of the total face value. Mungantiwar further said that the Council has also approved setting up of Appellate Tribunals.

However, a group of top online gaming firms, represented by the FICCI Gaming Committee, urged the Central Board of Indirect Taxes and Customs (CBIC) not to hike the GST rate for the sector to 28 per cent. On their part, it said, "This would be extremely detrimental to the existence of the online gaming industry as no business operation can continue with such a high tax."

The 50th meeting of the Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman, began on Tuesday. Speculations were rife even before the meeting that the GST Council would discuss taxation of online gaming, definition of utility vehicles besides tightening rules for registration and input tax credit (ITC) claims. Will consider.

At the beginning of the meeting being held in the national capital, Finance Minister Nirmala Sitharaman released a short film titled 'GST Council - 50 steps towards the journey'. On the other hand, the Finance Minister's Office tweeted, "In the 49 meetings held so far, the Council has taken around 1,500 decisions in the spirit of cooperative federalism." Indicates the success of federalism and the establishment of a good and simple tax system. ”Let us tell you that the GST Council, headed by the Union Finance Minister, also includes the Finance Ministers of the States and Union Territories.

The council has also taken a major decision in the matter of tax on sale of cinema tickets and supply of food items like popcorn or cold drinks etc. The council has announced GST on food items sold inside Cineplex to 5 per cent instead of 18 per cent. Earlier, cinema tickets below Rs 100 attracted 12 per cent GST, while tickets above Rs 100 attracted 18 per cent GST. Along with this, other products on which GST has been cut include uncooked food pellets, fish and soluble pastes. The tax rate on these has been reduced from 18 percent to 5 percent.