The 54th GST council meeting was held on Monday where Union Finance Minister Nirmala Sitharaman announced that there will be reduction of tax on cancer drugs, savoury food items and helicopter rides for Kedarnath pilgrimage.
In its upcoming meeting in November, the GST Council will decide whether to reduce the tax rate on premiums for health and life insurance policies, a matter recently highlighted by Opposition parties during the last Parliament session.
Sitharaman also revealed that a Group of Ministers will be formed to review the GST implications for the insurance premiums.
GST Council Meeting | Key Points
Group of Ministers (GoM) For Insurance Policies: Following the wide consensus among the states on reducing 18 per cent tax levied on health and life insurance policies, GST council appointed Bihar Deputy Chief Minister Samrat Choudhary to lead a GoM which is tasked with reporting by the end of October on issues like GST on policies purchased by resident welfare associations. The GST Council will make a decision after reviewing the GoM report.
Separate GoM Another GoM will examine the treatment of cess collections on luxury and sin goods after its sunset date of March 31, 2026.
GST Rate Cuts:
- GST on certain cancer drugs will be reduced from 12% to 5%. The cancer drugs include Trastuzumab Deruxtecan, Osimertinib and Durvalumab.
- GST on helicopter rides for Kedarnath pilgrimage will be lowered to 5% on a seat-share basis; chartered helicopter rides will remain at 18% GST.
- GST on some namkeens will decrease from 18% to 12%.
Online Gaming Taxation:
- From October 1, 2023, entry-level bets on online gaming platforms and casinos are subject to 28% GST.
- Prior to this, some online gaming companies argued for different tax rates for skill-based and chance-based games.
- The GST Council clarified that online gaming platforms must pay 28% tax, with offshore platforms required to register and pay taxes; non-compliance will result in site blocks.
- The online gaming sector's tax will be reviewed six months after implementation.
GST Exemption for Research Services:
-The GST Council has recommended exempting research and development services provided by government entities from GST.
-Union Finance Minister Nirmala Sitharaman explained that government-affiliated universities and research centers, including those established by central or state laws or those with income tax exemptions, will not have to pay GST on research funds from both public and private sources. This exemption aims to support the funding of academic and research institutions.
