Crunchy Delights Papad and Kachri to Enjoy Tax-Free Status: GST Council Meeting

The upcoming meeting of the Goods and Services Tax (GST) Council aims to make changes to the tax rates on certain food items while considering an increase in the compensation cess on certain vehicles. Currently, non-fried snacks like papads and kachris are taxed at 18 percent, and the proposal is to either eliminate the tax or set it at 5 percent.

Scheduled for July 11 in the national capital, the 50th Council meeting will address several key issues. One of the topics on the agenda is the taxation of online gaming, with the Council to decide whether to levy a tax of 28 percent on the full-face value of bets placed or on the gross gaming revenue.

Other proposals to be discussed include reducing the tax rate on drugs and food for special medical purposes to 12 percent, as well as reducing the GST rate to 5 percent on imitation zari thread or yarn. However, it is expected that the tax rate for apple carton boxes will remain unchanged at 18 percent. Similarly, no changes are anticipated for two-wheeler and four-wheeler flexi-fuel vehicles, which will likely continue to be taxed at 28 percent.

The meeting is unlikely to result in any decisions regarding millet-based products, which currently attract a GST rate of 12-18 percent. The Council may also provide clarity on whether the supply of food and beverages at cinemas should be taxable at the current rate of 5 percent.

In addition to the above, the Council is expected to address the long-pending proposal for a GST appellate tribunal that would help resolve disputes between taxpayers and tax authorities.

Overall, the GST Council meeting will focus on adjusting tax rates for specific food items, vehicles, and other products, while also considering the taxation of online gaming and addressing pending proposals.