GST reduced from 12% to 5% on cancer drugs, 18% to 12% on selected snacks

The GST council has decided to slash Goods and Service Tax (GST) on cancer drugs by reducing the rate from 12% to 5%. The decision was taken in the 54th GST Council meeting which was held in New Delhi yesterday. Union Finance Minister Nirmala Sitharaman chaired the meeting. During the meeting, Minister of State for Finance Pankaj Chaudhary and Finance Ministers of States were also present.

    

Briefing the media in New Delhi, Ms. Sitharaman said, the decision to reduce the GST rate on cancer drugs has been taken to bring down the cost of cancer treatment. She said, the GST on selected snacks has also been reduced from 18% to 12%.

     

The Minister said, funds given for research to universities established by the law of Centre, state governments, and those who have obtained income tax exemption are exempted from GST.

The Finance Minister said, GST Council yesterday decided to set up a Group of Ministers, GoM on reducing tax rate on life and



health insurance. She said, the Group of Ministers on GST rate reduction on medical health insurance will submit its report by the end of October this year and a meeting to be held in November will decide on the issue of rate reduction.

    

The GST Council has also agreed to form a Group of Ministers on compensation cess. Ms. Sitharaman said, the Group of Ministers on rate rationalisation and real estate submitted the status reports today. She said, status report on online gaming and casinos was also submitted. She said, revenue from online gaming has increased by 412 percent amounting to six thousand 909 crore rupees in 6 months.

GST rate on car seats have been increased from 18 percent to 28 percent. Roof Mounted Package Unit, RMPU Air Conditioning Machines for Railways would attract a GST rate of 28 percent. The approved flying training courses conducted by DGCA approved Flying Training Organizations will be exempt from GST.