The 54th Goods and Services Tax or GST Council Meeting, transpired on September 9. The meeting was headed by the Union Finance Minister and included state ministers holding finance portfolios from all the states.
Some crucial decisions were made in this pertinent meeting. Here are some of the key takeaways.
GST On Life-Saving Cancer Drugs
One of the most discussed aspects of the meeting has been the GST cut on life-saving cancer drugs. In addition to the recent custom duty cuts on cancer drugs, Finance Minister Nirmala Sitharaman announced a further reduction in GST on cancer drugs from 12 per cent to 5 per cent.
These medications include Trastuzumab, Deruxtecan, Osimertinib, and Durvalumab.
Insurance Premiums and GST
Another long-standing demand in the GST paradigm has been surrounding Life and Health Insurance premiums. In this matter, the council announced the setting up of a panel of a Group of Ministers on reduction of GST on insurance.
This group will be headed by NDA-ally and Bihar CM Nitish Kumar.
The panel is expected to submit its report by the end of October.
Government Cess
Like in the case of insurance, the finance minister has announced the formulation of Group of Ministers panel in the matter to look into the Cess levied. This panel is deployed to look into the functionality of Cess post-March 2026 and beyond and whether it could take a different shape while retaining its revenue generation abilities.
Exemption For Foreign Airlines
In what is seen as major relief for some players in the airline business, GST has been waived on the import of services by foreign airlines operating in India through branch offices, head offices, or other locations outside the country.
Furthermore, it is being said that past period issues will be regularised.
Other Cuts and Exemptions
The council has reduced GST levied from the previous 18 per cent to the new 12 per cent. In addition, the council also announced GST exemption on research funding procured by universities and research centres established by central or state government laws.
