GST rates reduced from 12 percent to 5 per cent on certain cancer drugs
Written By : Ruchika Sharma
Medically Reviewed By : Dr. Kamal Kant Kohli
Published On 2024-09-10 09:06 GMT | Update On 2024-09-10 09:07 GMT
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New Delhi: In an effort to reduce the overall cost for the treatment of cancer, the GST Council decided to reduce the GST rate on certain cancer drugs from 12 per cent to 5 per cent in a meeting held on Monday. These drugs are Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
In another decision, GST rate has been reduced prospectively from 18 per cent to 12 per cent for namkeens and savoury items.
Universities and research centers that have been established by a law of the Central Government; established by a law of the State Governments; and institutions that have obtained income tax exemption can receive research funds both government and from the private.
Such research-related funds would not attract taxes as they have been exempted from paying the GST.
According to a ANI report, a Group of Ministers has been tasked to look into GST rates related to medical insurance and come up with a report by October so that the GST Council can take up the matter in the November meeting.
"There were a lot of discussions about do we reduce the rate, or exempt it, for who should we exempt and who should not, what happens to group insurance, are we going to carve out only for senior citizens, will this not complicate the implementation," Finance Minister Nirmala Sitharaman told reporters after hours-long GST Council meeting held on Monday.
A lot of issues were brought up for further discussion in the GST Council, Sitharaman said, adding that's why they felt it should go through a rigorous look into by the GoM.
It will be the rate rationalization GoM headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose.
"We have told them that they will look into this matter and come up with a report by the end of October 2024. The #GST council which will meet in November will finalize based on this report which will come from the GoM," she added.
Both life insurance and medical insurance premiums attract a GST rate of 18 per cent.
Recently, many leaders from opposition-ruled states have requested Finance Minister Sitharaman to reduce GST on medical insurance and premiums. West Bengal Chief Minister Mamata Banerjee has requested the central government to withdraw the Goods and Services Tax (GST) on life insurance and health insurance premiums.
GST Council also recommended the formation of a GoM to study the future of compensation cess.
The council also notified that GST at 5 per cent will be imposed on the transport of passengers by helicopters on seat share basis as against 18 per cent earlier. The charter helicopter will continue to attract 18 per cent GST.
GST rate on car seats to be increased from 18 per cent to 28 per cent. This uniform rate of 28 per cent will be applicable prospectively for car seats of motor cars in order to bring parity with seats of motorcycles which already attract a GST rate of 28 per cent.
Read also: INDIA bloc stages protest against 18 per cent GST on health, life insurance premiums
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