Tax rebate likely to be made on cancer drugs and multiplexes refreshment

Tax rebate likely to be made on cancer drugs and multiplexes refreshment

GST council to grant IGST exemption on these things...

GST Council
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According to sources, the upcoming meeting of the GST Council, scheduled for Tuesday, is expected to make some significant decisions. One such decision is the potential exemption of GST on Dinutuximab, a cancer medicine imported by individuals. Additionally, the council will discuss and determine whether GST should be applicable to food or beverages served in multiplexes. Furthermore, they are likely to establish a precise definition of utility vehicles in order to impose a 22 percent cess on them. 

The Council, led by the Union finance minister and consisting of state ministers, will additionally be responsible for determining the exemption of Goods and Services Tax (GST) for private entities engaged in satellite launch services. Furthermore, there are indications that the importation of medications and Food for Special Medical Purposes (FSMP) intended for personal use and utilization by centers of excellence in the treatment of rare diseases may be exempted from the Integrated Goods and Services Tax (IGST). Currently, these imports are subjected to either a 5 percent or 12 percent IGST levy. 

At the upcoming 50th meeting of the Council scheduled for July 11, the fitment committee, consisting of tax officers from both the central and state governments, has put forth recommendations to address significant matters and seek clarity from the Council. Alongside the suggestions put forth by the fitment committee, the Council will also deliberate on the report submitted by the Group of Ministers (GoM) regarding online gaming. Furthermore, the Council will work towards finalizing the details for establishing an appellate tribunal and address the industry's request for full reimbursement of Central Goods and Services Tax (CGST) and 50 percent Integrated Goods and Services Tax (IGST) in 11 hill states under the 'scheme for budgetary support.'

According to sources, the fitment committee has proposed to the Council that Multi Utility Vehicles (MUVs) or multipurpose vehicles or crossover utility vehicles (XUVs) should be classified on par with Sports Utility Vehicles (SUVs) in terms of taxation. The recommendation suggests the imposition of a 22 percent compensation cess in addition to the existing 28 percent Goods and Services Tax (GST) rate for such vehicles. As per the committee's suggestion, utility vehicles, regardless of their nomenclature, would be subject to a 22 percent cess if they satisfy three criteria: having a length exceeding 4 meters, an engine capacity surpassing 1,500 cc, and a ground clearance in the 'un-laden condition' exceeding 170 mm.

According to the committee, food or beverages provided within a cinema hall should be treated as a taxable restaurant service. On the other hand, in cases where cinema tickets and consumables like popcorn or cold drinks are bundled and sold together, the committee suggests treating the entire transaction as a composite supply. Accordingly, it should be taxed at the rate applicable to the principal supply, which in this scenario would be the cinema ticket. At present, movie tickets priced below Rs 100 incur a 12 percent Goods and Services Tax (GST), while those exceeding the threshold are subject to an 18 percent GST. 

Currently, public sector enterprises such as ISRO, Antrix Corporation Ltd (ACL), and New Space India Ltd (NSIL) enjoy GST exemption for satellite launch services. However, private players are obligated to pay an 18 percent tax. Recognizing India's growing presence in the global commercial space market, the fitment committee has proposed extending the exemption to private players as well, aiming to ensure a level-playing field. 

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