Food & drinks to be available at cheap prices in cinema halls, GST Council reduced tax

NEW-DELHI: The Goods and Services Tax Council (GST Council) in its 50th meeting on Tuesday agreed on several proposals, including reducing the tax on food served in cinema halls. Along with this, the council has talked about giving tax exemption on the import of some life-saving medicines.

A council headed by the finance ministers of the states and the Union finance minister has decided to reduce the tax on food served in cinema halls from 18 per cent to just 5 per cent. Revenue Secretary Sanjay Malhotra said, "It has been clarified by the GST Council that food and beverages consumed in cinema halls will attract 5 percent GST, not 18 percent.

At the same time, speaking to reporters in New Delhi, West Bengal Finance Minister Chandrima Bhattacharya said that the Council has decided to give GST exemption on import of cancer drug Dinutuximab and Food for Special Medical Purposes (FSMP). 

Apart from this, the council has also agreed to levy 28 percent tax on online gaming, casino and horse racing and this tax will be levied on full face value. The GST Council has decided that online gaming, casino and betting on horse racing will be taxed at 28 per cent on the full value at the entry point.