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Govt Revise GST Slabs; Find Out What Gets Cheaper, What’s Costlier

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New Delhi: The 50th Meeting of the GST Council held in the national capital on Tuesday marked a significant milestone in the journey of Goods and Services Tax (GST).

Led by Finance Minister Nirmala Sitharaman, the council made noteworthy recommendations regarding changes in GST tax rates, facilitation of trade, and streamlining compliance processes. To commemorate this milestone, Sitharaman released a short film titled ‘GST Council – 50 steps towards a journey’.

The council has made approximately 1,500 decisions in the spirit of cooperative federalism in its previous 49 meetings. The 50th meeting was considered a significant achievement, symbolizing the success of cooperative federalism and the establishment of a good and simple tax regime, a tweet from the office of Nirmala Sitharaman stated.

During the meeting, Sitharaman also unveiled a Special Cover and customized ‘myStamp’, presented by the Chief Post Master General of Delhi Circle India Post Office.

In terms of changes to GST tax rates, the council proposed several recommendations for goods and services. Notably, the council suggested reducing the GST rate on uncooked/unfried snack pellets from 18 percent to 5 percent.

Here are the key changes in the GST Tax rates:

Costlier:
• Online gaming, horse racing, and casinos will be taxed at 28%, eliminating the distinction between games of skill and chance.
• Food served in cinema halls will now attract a 5% GST, reduced from the previous 18%.

Cheaper
• Uncooked/unfried snack pellets will see a reduction in GST rates from 18% to 5%.
• Fish-soluble paste and imitation zari threads will be taxed at 5%, down from 18% and 12%, respectively.

Exemptions
• Cancer-related drugs, medicines for rare diseases, and food products for special medical purposes will be exempted from GST.
• Satellite launch services provided by private organizations will be exempted from GST.
• Imported medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases listed under the National Policy for Rare Diseases will be exempted from Integrated Goods and Services Tax (IGST).

Simplifying Compliance and Services

Compliance:
• Goods Transport Agencies (GTAs) will benefit from simplified compliance procedures.
• The taxability of services provided by company directors to their respective companies will be clarified.

Services:
• Satellite launch services by private sector organizations, including ISRO, Antrix Corporation Limited, and New Space India Limited (NSIL), will be eligible for GST exemption, promoting start-ups.

Additional Amendments and Inclusions:
• Linz-Donawitz (LD) slag, fish soluble paste, and imitation zari thread are incorporated within the revised GST rates framework to promote utilization and environmental protection.

Other Amendments:
• Changes to levy Compensation Cess on pan masala, tobacco products, etc., will be implemented based on the ad valorem rate applicable on March 31, 2023.
• RBL Bank and ICBC Bank will be included in the list of specified banks eligible for IGST exemption on imports of gold, silver, or platinum.

In conclusion, the 50th GST Council meeting brought significant changes to the GST tax rates, exempted certain goods and services, simplified compliance processes, and extended benefits to various sectors. These revisions aim to enhance cooperative federalism and establish a streamlined tax regime, promoting trade and economic growth in India.

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