Gulte Telugu news
In a recent development, the GST Council, during its 50th meeting held on July 11, announced a significant reduction in the tax rate on food served in cinema halls. The tax on items such as popcorn and cold drinks, commonly consumed at multiplexes, has been reduced from 18% to 5%.
This decision comes as welcome news for moviegoers and the entertainment industry alike. The reduced tax rate is expected to make the overall cinema experience more affordable for audiences. By lowering the tax burden on food items, the GST Council aims to promote the growth of the film exhibition sector and encourage increased footfall in cinemas.
It is important to note that if the sale of cinema tickets and the supply of food items such as popcorn or cold drinks are bundled together and sold as a single package, the entire supply will be treated as a composite supply. In such cases, the applicable rate of the principal supply, which is the cinema ticket, will determine the tax rate. Currently, movie tickets below ₹100 are taxed at 12%, while those above the threshold attract an 18% GST.
Additionally, the GST Council also made other notable decisions during the meeting. It was decided that a 28% GST rate would be levied on the full value of gaming, horse racing, and casinos, which may impact online gaming companies. The Council also exempted GST on key imports of pharmaceutical products, including the cancer drug Dinutuximab, and Food for Special Medical Purposes (FSMP).
Furthermore, the council approved the establishment of appellate tribunals and eliminated the distinction between games of skill and chance in the case of online gaming. These decisions are expected to streamline processes and bring more clarity to the respective industries.
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, comprises a panel of state representatives. Following the meeting, Minister Sitharaman held a media briefing to communicate the outcomes of the GST Council meeting. Movie lovers thanked Finance Minister Nirmala Sitharaman for this big relief.
