GST Council meeting on July 11: Papad, kachri set to be exempted from GST, other things on agenda

The forthcoming meeting of the Goods and Services Tax (GST) Council is set to reduce the tax rate on certain food items like papad and kachri, even as a hike of the compensation cess on some vehicles is on the cards.

At present, the tax on non-fried snacks like papads and kachris, is levied at 18 per cent. The proposal is to remove it altogether or fix it at 5 percent. The agenda of the 50th Council meeting also includes the vexed issue of taxing online gaming.

Earlier, a group of state finance ministers had left it to the Council as to whether the tax should be levied at the rate of 28 per cent on the full-face value of bets placed or on the gross gaming revenue.

Accordingly, a final decision may be taken on this matter at the meeting, sources have told. Among the other proposals is the one on reducing the tax rate on drugs and food for special medical purposes to 12 per cent.

A reduction in the GST rate to five per cent on imitation zari thread or yarn is also on the agenda. However, it is proposed to maintain the status quo on apple carton boxes at the current rate of 18 per cent.

No change is also expected on two-wheeler and four-wheeler flexi-fuel vehicles, with the current rate being at 28 per cent. No decision is expected on millet-based products, which currently attract 12-18 per cent GST.

The Council may also clarify whether the supply of food and beverages at cinemas is taxable at the current rate of 5 per cent.

Besides the above, it is expected that the Council will also take up the long-pending proposal of a GST appellate tribunal to resolve disputes between taxpayers and the tax authorities.