New Delhi, Sep 9 (Mayank Nigam) The all-powerful GST Council on Monday decided to reduce GST rates on certain cancer drugs to 5% from 12% while deferred the decision on cutting tax rates on life and health insurance premiums by referring the issue to a Group of Ministers (GoM). The GoM will submit its report by October 2024 following which it will be taken up by the Council in its next meeting. “Two new GoMs have been decided. One is on the medical and health insurance. It will be the rate rationalisation GoM headed by deputy chief minister of Bihar but with newer members added for this limited purpose,” Union Finance Minister Nirmala Sitharaman said after the meeting of 54th GST Council meeting here today.
“There were a lot of discussions about which one is going to be taken up. Will we reduce the rate or will be exempted? For who it should be exempt and who should not? What happens to the group insurance? Then, are we going to carve out only for senior citizens? Will this not complicate the implementation? Therefore, a lot of these issues were brought up for further discussion. That’s why we thought it’s better this goes through a rigorous looking into by the GoM and then they come forward. These aspects were differently talked and the question was raised on that,” the Minister further said. The GST Council meeting was held here today at Sushma Swaraj Bhawan in the national capital. Minister of State for Finance Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya, Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana besides Finance Ministers of States & UTs (with legislature) attended the meeting. Other than the GoM on insurance, the Council recommended to set up a GoM to study the future of compensation cess.
Meanwhile, the GST Council also recommended reduction in GST rates on cancer drugs – Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 12% to 5%. The Council also recommended to exempt from GST the funds given for research to universities established by the law of Centre, state governments, and those which have obtained income tax exemption. The apex indirect tax body in its meeting today also decided to notify 5% GST on the transport of passengers by helicopters on seat share basis thus benefitting pilgrims using helicopter service for Chardham yatras. The Council recommended various measures for facilitation of trade and streamlining compliances in GST.