New Delhi: The GST Council meeting on Monday brought several significant decisions impacting various sectors. Here’s a detailed look at the key outcomes:
Big Relief on Cancer Medicines
In a major relief for cancer patients, the GST on cancer medicines has been slashed from 12% to 5%. This move is expected to make these essential drugs more affordable for patients across the country.
Insurance Premium Decision Deferred
While there was anticipation around a potential reduction in GST on insurance premiums, the Council has postponed the final decision to its next meeting in November. This delay means that, for now, the current GST rates on insurance premiums remain unchanged.
Reduction in GST on Namkeen
Good news for snack lovers! The GST on namkeen has been reduced from 18% to 12%. This reduction is likely to make these popular snacks more affordable.
Revenue Surge from Online Gaming
Union Finance Minister Nirmala Sitharaman highlighted a significant increase in revenue from the online gaming sector. Since the imposition of GST on online games, revenue has surged by 412%, reaching ₹6909 crore in the last six months. Casinos have also seen a 30% increase in revenue.
GST Hike on Car Seats
Revenue Secretary Sanjay Malhotra announced an increase in GST on car seats from 18% to 28%. Additionally, rooftop package units and air conditioning machines for railways will now be taxed at 28%.
Tax on Helicopter Services
The Council has recommended a 5% GST rate on the transportation of passengers by helicopter on a seat-sharing basis, aligning it with the tax rate for air travel. This includes a reduction in GST for helicopter services used for religious pilgrimages, such as those to Kedarnath and Badrinath, from 18% to 5%.
Exemption for Educational Institutions
Finance Minister Nirmala Sitharaman announced that three types of educational institutions will no longer have to pay GST on receiving grants. This includes universities and research centers constituted under central and state laws, as well as educational institutions exempted from income tax. These institutions will not have to pay GST on research funds received from public and private sources.
These decisions reflect the GST Council’s ongoing efforts to streamline tax rates and provide relief where needed. The next meeting in November is expected to bring further clarity on the pending issues, particularly regarding insurance premiums.
