GST Council's Major Taxation Changes in India: Health and Real Estate Focus
GST Council's Tax Reductions: Focus on Health and Real Estate
The GST Council has made notable adjustments to the taxation framework, particularly affecting health and real estate sectors. During the 54th meeting in New Delhi, Union Finance Minister Nirmala Sitharaman announced a reduction in the GST rate on cancer drugs from 12% to 5%, aiming to enhance accessibility to essential medicines.
Furthermore, the council reduced the GST rate on extruded namkeen snacks from 18% to 12%. To stimulate research, the GST on funds designated for universities with income tax exemptions will be waived.
Health Insurance and Online Gaming Developments
A Group of Ministers (GoM) will investigate potential tax cuts on life and health insurance, with recommendations expected by the end of October. Meanwhile, online gaming revenue has surged by 412%, reaching Rs 6909 crore in six months, prompting the council's attention on taxation norms in this sector.
Changes also include an increase in the GST rate on car seats from 18% to 28% and the introduction of a 28% rate on Roof Mounted Package Units (RMPU) for air conditioning machines in railways.
These pivotal decisions indicate a strategic approach by the Modi administration to adapt taxation in India to new market dynamics.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.