New Delhi: The GST Council has resolved to cut the Goods and Services Tax (GST) on cancer drugs, reducing the rate from 12% to 5%.
This decision emerged from the 54th GST Council meeting held in New Delhi yesterday, chaired by Union Finance Minister Nirmala Sitharaman. Minister of State for Finance Pankaj Chaudhary, along with Finance Ministers from various states, were in attendance.
In a media briefing in New Delhi, Ms Sitharaman announced that the GST rate on cancer drugs was reduced to decrease the cost of cancer care. Additionally, she mentioned that the GST on certain snacks has been lowered from 18% to 12%.
Ms. Sitharaman also stated that research funds granted to universities established by central or state laws, and those with income tax exemptions, would not be subject to GST.
Furthermore, the Finance Minister revealed that the GST Council has decided to establish a Group of Ministers (GoM) to consider tax rate reductions on life and health insurance. This GoM is expected to present its report by the end of October this year, with a subsequent meeting in November to deliberate on the rate reduction.
The Council has consented to form another GoM to discuss compensation cess. Ms. Sitharaman reported that the GoMs on rate rationalization and real estate have already submitted their status reports. She also noted that the revenue from online gaming surged by 412 per cent, reaching 6,909 crore rupees over six months.
The GST rate on car seats has been raised from 18% to 28%. Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways will also be subject to a 28% GST rate. Meanwhile, GST will be waived for approved flying training courses conducted by DGCA-approved Flying Training Organizations.
