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The Goods and Services Tax (GST) Council has decided to levy the maximum 28 per cent tax on the full face value of bets in online gaming, casinos and horse racing, lowered tax on food and beverages sold in multiplexes, and tweaked the definition of utility vehicles for the levy. The Council also exempted GST (Goods and Services Tax) on import of cancer drug Dinutuximab, and medicines used to treat rare diseases and food used in Food for Special Medical Purposes (FSMP), besides satellite launch services provided by private operators. 

It stated food and beverages consumed in cinema halls will attract a GST of 5 per cent, equivalent to the levy charged in hotels and restaurants, instead of 18 per cent which in many cases the cinema halls were charging. Moreover, the definition of utility vehicles has been tweaked for the purpose of levy of a 22 per cent cess over and above the 28 per cent GST rate. The cess will be imposed on any utility vehicles of 1,500 cc and above engine capacity, length of 4 metres and above and un-laden ground clearance of 170 mm. This definition will, however, not cover sedans.

Besides, talking about the decisions taken at the 50th Council meeting, Union finance minister Nirmala Sitharaman said the decision to levy maximum tax on online gaming and casinos was not intended to kill the industry but considering the moral question that it cannot be taxed at par with essential commodities.