GST Council Reduces Tax Rates on Cancer Drugs and Snacks

Major Tax Changes from the GST Council

The GST Council has significantly reduced the Goods and Services Tax (GST) rate on cancer drugs from 12% to 5%. This important decision was made during the 54th GST Council meeting held in New Delhi yesterday, chaired by Union Finance Minister Nirmala Sitharaman.

Tax Rate Adjustments on Other Goods

In addition, the GST rate on extruded namkeen snacks has been lowered from 18% to 12%. To promote research and innovation, the council decided to exempt GST on funds allocated to universities established by the central or state governments, as well as those with income tax exemption.

Focus on Life and Health Insurance

Importantly, the GST Council formed a Group of Ministers (GoM) to explore reducing the tax rate on life and health insurance. The GoM is expected to submit its recommendations by the end of October, aiding in the council's final decision scheduled for November.

Impacts on Online Gaming and Real Estate

Another GoM has been established to address the issue of compensation cess. The council received status reports on rate rationalization and real estate, as well as online gaming and casinos. Notably, revenue from online gaming has surged by 412%, reaching Rs 6909 crore in just six months.

Adjustments on Other Goods

Regarding other changes, the GST rate on car seats has been increased from 18% to 28%. Meanwhile, Roof Mounted Package Unit (RMPU) air conditioning machines for railways will now attract a GST rate of 28%. Approved flying training courses conducted by DGCA-approved organizations will be exempt from GST.