GST Council Cuts Tax on Food Items Sold in Movie Halls, Online Games Face 28% Tax
Introduction to the GST Council’s Decision
The Goods and Services Tax (GST) Council, the highest decision-making body for GST, has made significant changes to the tax rates. The council has decided to reduce the tax on food items sold in movie halls from 18% to 12%. However, online games and betting will now be subject to a 28% tax. Additionally, the GST regime will also cover casinos and horse racing.

Changes in Tax Rates
Reduced Tax on Food Items in Movie Halls
In response to the film industry’s demands, the GST Council has lowered the tax on food items sold in movie halls. The industry argued that the high tax rate was hindering their competitiveness against streaming services and other entertainment options.
Higher Tax on Online Games and Betting
To discourage gambling, the council has imposed a 28% tax on online games and betting. This move aims to regulate the industry and deter excessive participation. Furthermore, the council has expanded the GST regime to include casinos and horse racing.
Implementation Date
The revised tax rates will take effect from July 18, 2023.
Key Details of the GST Changes
Here are the essential details concerning the GST alterations:
- Food items sold in movie halls will now be taxed at 12%, down from 18%.
- Online games and betting will be subject to a 28% tax.
- Casinos and horse racing will be incorporated into the GST regime.
- The revised tax rates will be applicable from July 18, 2023.
Reactions to the GST Changes
Positive Response from the Film Industry
The film industry has welcomed the decision to reduce the tax on food items sold in movie halls. They believe this move will attract more customers and enhance their competitiveness.
Criticism from the Gaming Industry
The gaming industry has expressed dissatisfaction with the decision to impose a 28% tax on online games and betting. They argue that this tax will make it challenging for them to compete with foreign gaming companies.
Government’s Perspective
The government has stated that the GST changes aim to improve the efficiency and transparency of the tax regime. They believe these changes will also contribute to increased revenue collection.
Final Verdict
The GST changes bring a mixture of positive and negative implications. Consumers will welcome the reduced tax on food items sold in movie halls, making the movie-going experience more affordable. However, the gaming industry may face challenges due to the higher tax rate on online games and betting, potentially hindering their competitiveness against international gaming companies.

Overall, the GST changes align with the government’s goal of creating an efficient and transparent tax system. While the decision to lower taxes on movie hall food items promotes consumer satisfaction, the impact of the increased tax on online gaming remains a point of contention.
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