50th GST Council Meeting

Last updated on October 7th, 2023 at 03:38 pm

50th GST Council Meeting

The 50th GST Council Meeting was held on 11th July 2023 in New Delhi under the Chairmanship of Finance Minister Nirmala Sitharaman. The previous meeting i.e. 49th GST Council Meeting was held before 5 months on 18th February 2023 and the key takeaways of the 49th GST Council Meeting.

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Key Takeaways of the 50th GST Council Meeting 

⊗ GST rate on Online Gaming, Casino, and Horse Races – 

GST Council clarified that a uniform rate of 28% shall be levied on the full face value of consideration in the case of online gaming, casino, and horse races. 

The above decision is likely to disrupt the online gaming industry for once at least. As Government has clarified that the GST rate was always 28% it was interpreted incorrectly by some online gaming companies as 18%. So it is highly likely that notices will be issued to the industry at large and recovery of taxes will be made.

The online gaming industry has been paying GST @ 18% on the platform fees which is hardly 5% of the pot value/full face value/cost of purchasing chips. Now they are expected to pay 28% on the pot value/full face value/cost of purchasing chips.

For eg. XYZ Gaming Company sells Rs 100 pot money to Mr. A and charges a 10% platform fee plus 18% GST on the platform fee of Rs 10. The company has collected Rs 1.8 from Mr. A and paid to Government. Whereas if the above amendment is implemented retrospectively then the company will be expected to pay 28% on Rs 110 i.e. Rs 29.8.

Gaming Companies will be expected to pay the taxes which they have not collected due to incorrect interpretations by the industry at large and in the absence of clarity from the Government.

Government plans to amend Schedule III of the GST Act and it is likely that it will be taken up in the monsoon session.

Government also plans to challenge the court order before Supreme Court.

⊗ GST rate reduced on following

⇒ LD  Slag from  18% to 5%.

⇒ Food & beverages at cinema halls from 18% to 5%.

⇒ Fish Soluble Waste from 18% to 5%.

⇒ Imitation Zari from 12% to 5%.

⊗ GST Exemptions 

⇒ Satellite launch services if provided by private enterprises.

⇒ Cancer treatment drugs

⇒ Special treatment drugs

⊗ GST Appellate Tribunal 

GST Appellate Tribunal has got a nod in today’s meeting and is likely to be started phase wise.

⊗ GST Compensation Cess

GST Compensation Cess will be provided to the states when AG certified pending cess accounts are provided to Central Government.

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CA Ankita Khetan

Founder at Financepost.in

Chartered Accountant in practice, DipIFRS (from ACCA, UK), Post Graduate in Commerce, Certified Independent Director (from IICA), and holds a certification in Forex and Treasury Management course (by ICAI).

She can be contacted at info.financepost@gmail.com

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Disclaimer: The above content is for general info purpose only and does not constitute professional advice. The author/ website will not be liable for any inaccurate / incomplete information and any reliance you place on the content is strictly at your risk.

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