GST Council Cuts Tax on Cancer Drugs, Announces Key Changes in 54th Meeting

GG News Bureau
New Delhi, 10th Sept. The 54th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman on Monday, has drawn considerable attention from both industry leaders and the general public. The GST Council, which regularly makes pivotal decisions affecting the economic landscape of India, has once again delivered a series of significant outcomes. As the country navigates through these changes, it’s crucial to reflect on the implications of these decisions.

1. Reducing GST on Cancer Medications: A Positive Step

One of the most noteworthy decisions is the reduction of GST on cancer medications from 12% to 5%. This move is expected to ease the financial burden on cancer patients and their families, making critical treatments more accessible. It is a commendable step toward improving healthcare affordability, and it reflects a growing recognition of the need to support individuals facing serious health challenges.

2. Insurance Premiums: A Work in Progress

The decision to potentially lower the GST on health and life insurance premiums is a promising development. Currently, the GST on these premiums stands at 18%, and while there is consensus on reducing this rate, the exact percentage will be decided in the next meeting. This adjustment could make insurance policies more affordable, thereby encouraging more individuals to secure their financial futures.

3. Formation of GoM on Cess Compensation: A Necessary Initiative

The agreement to form a Group of Ministers (GoM) to address issues related to Cess Compensation is a crucial step. This GoM will likely play a significant role in refining the mechanisms for compensating states affected by GST revenue losses, ensuring that states continue to receive fair and timely financial support.

4. Lower GST on Namkeen: A Relief for Consumers

Reducing the GST on namkeen from 18% to 12% is a move that will benefit everyday consumers. While seemingly minor, this change reflects a broader effort to ease the cost of living and make essential goods more affordable for the average Indian.

5. Meetings Beyond Delhi: A Welcome Expansion

The decision to hold GST Council meetings outside Delhi starting with the 56th session is a positive development. This expansion is expected to enhance regional representation and engagement, providing a platform for a more inclusive dialogue on GST-related issues across different states.

6. Exemption on Imported Services: A Strategic Move

Granting exemptions on GST for services imported by foreign airlines is a strategic decision aimed at fostering a more competitive environment for international aviation services. This move could potentially attract more international players and stimulate growth in the sector.

7. Higher GST on Car Seats: Implications for Consumers

The increase in GST on car seats from 18% to 28% could lead to higher costs for consumers. This decision might impact vehicle prices and, consequently, the affordability of personal transportation. It underscores the need for careful consideration of the balance between revenue generation and consumer impact.

8. Reduced GST on Helicopter Pilgrimages: A Thoughtful Adjustment

Reducing GST on helicopter services for pilgrimages from 18% to 5% is a thoughtful adjustment. It reflects an understanding of the unique needs of pilgrims and could make religious travel more accessible for those who seek it.

9. Online Gaming Revenue Surge: An Industry on the Rise

The remarkable 412% increase in revenue from online gaming highlights the sector’s rapid growth. With the government continuing to levy a 28% GST, it’s clear that online gaming is becoming a significant contributor to the economy. This growth underscores the need for ongoing regulatory and fiscal policies to support the sector’s development.

10. Casino Revenue Growth: Stability Amidst Change

The 30% increase in revenue from casinos, while subject to a 28% GST, indicates a thriving industry. No changes were made to the GST rate in this meeting, suggesting a stable approach to regulating this sector.

In conclusion, the 54th GST Council meeting has delivered a series of decisions that will have diverse impacts across various sectors. While some decisions offer relief and support to individuals and industries, others introduce new challenges and adjustments. As these changes are implemented, continuous evaluation and feedback will be essential to ensure that they effectively balance economic growth with public welfare.