GST Council Meeting: Cancer Drugs To Helicopter Travel, Here's What Will Become Cheaper

GST Council Meeting: The Council is also moving towards a consensus on reducing GST rates on life and health insurance premiums. However, a final call will be made in the next meeting

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, announced tax reductions on a range of goods and services following the 54th GST Council meeting on Monday. These cuts are aimed at providing relief to consumers and will be implemented prospectively. Key highlights from the meeting include:

Cancer Drugs

GST on critical cancer medications — Trastuzumab Deruxtecan, Osimertinib, and Durvalumab — has been slashed from 12 per cent to 5 per cent, making these life-saving treatments more affordable.

Namkeen and Savoury Food Products

The GST rate on namkeens and other savoury items will be reduced from 18 per cent to 12 per cent. Additionally, unfried or uncooked snack pellets will continue to attract a 5 per cent GST rate.

Helicopter Travel for Religious Purposes

In a significant move, taxes on helicopter services for religious travel have been cut from 18 per cent to 5 per cent. This applies to popular pilgrimage destinations such as Kedarnath and Badrinath. Uttarakhand Finance Minister Prem Chand Agarwal welcomed the decision, stating that it brings much-needed clarity to religious travel services.

Car and Motorcycle Seats

The GST rate for car seats, classified under heading 9401, will see an increase from 18 per cent to 28 per cent. This uniform 28 per cent rate will apply prospectively.

Research Funding

Research funds for higher educational institutions and research centres established by state or central laws will now be exempt from GST, promoting academic and scientific advancements.

The Council is also moving towards a consensus on reducing GST rates on life and health insurance premiums, which are currently taxed at 18 per cent. However, a final decision will be made in the next Council meeting. A Group of Ministers (GoM) has been set up to examine this proposal, as well as the broader impact of tax cuts on life, health, and reinsurance premiums, based on a report presented by the Fitment Committee.

These announcements reflect the government's efforts to ease the tax burden on essential goods and services while ensuring clarity in tax structures for various sectors.