GST Council Lowers Cancer Drug Tax

5% reduction from 12% aims to lower treatment costs
GST Council Lowers Cancer Drug Tax
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New Delhi- In the 54th GST Council meeting held in New Delhi, a key decision was made to lower the Goods and Services Tax (GST) on cancer drugs from 12% to 5%. The meeting was chaired by Union Finance Minister Nirmala Sitharaman, with Minister of State for Finance Pankaj Chaudhary and several state Finance Ministers also in attendance.

During a media briefing, Ms. Sitharaman explained that the reduction in GST on cancer drugs aims to make cancer treatment more affordable. Additionally, GST on certain snacks has been reduced from 18% to 12%.

The council also decided that funds allocated for research to universities, which are either established by central or state laws or have income tax exemptions, will now be GST-exempt.

The GST Council also agreed to set up a Group of Ministers (GoM) to explore the possibility of reducing GST on life and health insurance. This group is expected to submit its report by the end of October, with a final decision likely to be made in November.

A GoM will also be formed to address the issue of compensation cess. Reports on rate rationalization and the real estate sector were presented, along with updates on online gaming and casinos, where revenue has surged by 412%, reaching ₹6,909 crore in just six months.

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

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