New Delhi: The GST Council on Monday announced a reduction in the Goods and Services Tax (GST) on cancer drugs from 12% to 5%, as part of efforts to lower treatment costs. This decision was made during the 54th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, with key finance officials and state ministers in attendance.
Nirmala Sitharaman also revealed that the GST on certain snacks has been reduced from 18% to 12%, aimed at making these items more affordable. Furthermore, research funds provided to universities established by central or state laws and those with income tax exemptions will be exempt from GST.
The council has decided to establish a Group of Ministers (GoM) to examine the possibility of reducing GST rates on life and health insurance, with a report expected by the end of October. The council will discuss potential rate reductions in November. Another GoM will be formed to address compensation cess issues.
Reports from the Group of Ministers on rate rationalization and real estate were submitted during the meeting, along with updates on online gaming and casinos, which have seen a 412% revenue growth, generating ₹6,909 crore in six months.
Other notable decisions include raising the GST on car seats from 18% to 28%, and applying the same rate to Roof Mounted Package Unit (RMPU) air conditioning machines used in railways. Additionally, flying training courses approved by the DGCA will be exempt from GST.
