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The much-anticipated 50th meeting of the GST council ended with many crucial announcements in the tow. From taxation on online games to bringing the GST network under the prevention of money laundering act, there were a lot of cards.

The meeting focused largely on GST rate reductions, increases and regularisations. On the goods front, 4 items saw rate reductions, 3 saw exemptions and 5 items saw GST regularization. Here are some key announcements made by the council, and how it will impact your pocket :

Online gaming, casinos, horse-racing @28%
Winnings from online gamings, casinos and horse-racing will be pooled under one category and taxed at 28% on their full value. For example, if a player gambles with Rs 1,000 and gets back Rs 1,500, then 28% would be payable on Rs 1,500. Going ahead, there will be no distinction made between games of skill and game of chance in the online gaming space. This means that irrespective of the nature of the game, your wins from the same will be subjected to 28% GST. The move could mean a severe blow to fantasy-gaming platforms like Dream11, MPL and MyTeam11, who tout themselves as a game of skill.

The sharp U-turn comes days after the Ministry of Electronics and IT (MeitY) allowed the industry to take a call on what online games would be permitted in India. On its end, the government would appoint multiple self-regulatory organisations (SROs) consisting of experts to assess these games. Recently, three bodies, representing over 200 gaming websites, have submitted proposals for operating as SROs.

However, finance minister Nirmala Sitharaman noted that this stance was purely regulatory, while this stand is purely tax-based. They will however, sync their stand with that of MeitY. The FM further highlighted that the GST council is not viewing online games as that of skill or chance, but one which generates value.

Drugs for critical illness’ receive exemption
Some of the items and services that received GST exemption included import of listed cancer-related drugs, specific medicines for rare diseases and food items that are crucial for medical purposes. Items that were regularized included raw cotton from farmers to cooperatives. On the service end, launch of satellite services undertaken by private organizations will also not come under the GST umbrella.

Food and beverages consumed within cinema hall will now be charged a GST of 5%, as against the previously contested threshold of 18%. Notably, GST is charged at 5% on consumption of food and beverages consumed in restaurant.

GST benches to be introduced in phased manner

On the issue of GST benches for each state, the council mandated that it will start off with cities where high-court benches are already present.