GST Council Meet: 28% GST on online gaming, tax relief for cancer drugs and more

In its 50th meeting, the GST Council recommended a 28 per cent GST on online gaming, casinos, and horse racing, leading to concerns within the gaming industry. This has led to concerns in the gaming industry regarding the potential impact on investments, job opportunities, and the overall economy. In this latest episode of the News Explained podcast, Shishir Sinha, Associate Editor, provides insights into the outcomes of the 15th GST Council meeting and its impact on various sectors.  The government focuses on treating these activities as acceptable claims rather than distinguishing between games of skill and games of chance. This decision will have implications for the taxation of these sectors.  The council took several decisions, including the exemption of GST on the cancer treatment drug Dinutuximab (Quarziba) when imported for personal use. This move aims to alleviate the financial burden on patients requiring life-saving medications. The exemption does not extend to the input by companies or the industry.  Another significant development in the meeting was the discussion around utility vehicles. The GST Council recommended parameters for defining these vehicles, including length, engine capacity, and ground clearance. Utility vehicles meeting these criteria will attract a 20 per cent GST, potentially impacting pricing and consumer choices. The automobile sector is awaiting further clarification through a final circular to understand the implications more clearly.  As the discussions and recommendations from the GST Council meeting progress, legislative changes may be required. The process involves the submission of proposals to parliament for potential changes in legislation. Circulars and instructions issued by the Central Board of Indirect Taxes and Customs (CBIC), and state GST departments ensure the implementation of these recommendations nationwide. Listen in.   --- Send in a voice message: https://podcasters.spotify.com/pod/show/business-line/message