New Delhi: In a major relief for cancer patients, Union Finance Minister Nirmala Sitharaman announced that the Goods and Services Tax (GST) rate on cancer drugs has been reduced from 12% to 5%. The decision was made during the 54th GST Council meeting held on Monday.
In addition, GST on helicopter services for pilgrims and tourists will be lowered from 18% to 5%, making air travel to religious and tourist destinations more affordable. Similarly, the GST rate on namkeens and savoury items has been reduced from 18% to 12%, providing relief to food producers and consumers alike.
Key Announcements from the 54th GST Council Meeting:
- Exemption on R&D Funding: Funds allocated for research and development to Central and state government universities, as well as institutions that have obtained Income Tax exemptions, will now be exempted from GST.
- New Group of Ministers (GoMs): Two new GoMs have been formed — one to review medical and health insurance and another to decide on the utilisation of compensation cess post-March 2025.
- Rate Rationalisation for Medical Insurance: New members have been added to the existing GoM on rate rationalisation for medical insurance. A report on this will be submitted in October.
- Revenue from Gambling: A status report on online gaming and casinos revealed a significant surge, with revenue from gambling rising by 412% to Rs 6,909 crore in just six months.
The GST Council’s next meeting is scheduled for November 2024, during which final decisions based on the GoM’s findings are expected to be made. The rate cuts are part of ongoing efforts to rationalize taxes and provide relief to key sectors.