GST Council slashes cancer drug tax, reduces rates on snacks and air conditioning machines

The GST Council has significantly reduced the Goods and Services Tax (GST) rate on cancer drugs from 12% to 5%. The decision was made during the 54th GST Council meeting held in New Delhi yesterday, chaired by Union Finance Minister Nirmala Sitharaman.

Additionally, the GST rate on extruded namkeen snacks has been lowered from 18% to 12%. To promote research and innovation, the council decided to exempt GST on funds allocated to universities established by the central or state governments, as well as those with income tax exemption.

In other key decisions, the GST Council formed a Group of Ministers (GoM) to explore reducing the tax rate on life and health insurance. The GoM will submit its recommendations by the end of October, and the council will make a final decision on the matter in November.

Another GoM was established to address the issue of compensation cess. The council also received status reports from the GoM on rate rationalization and real estate, as well as online gaming and casinos. The revenue from online gaming has surged by 412%, reaching Rs 6909 crore in just six months.

Regarding 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 now attract a GST rate of 28%. Approved flying training courses conducted by DGCA-approved organizations will be exempt from GST.

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