GST Council has set up a new group of ministers (GoM) headed by the deputy Chief Minister of Bihar to prepare a report on tax reduction rate on medical health insurance
The Goods and Services Tax (GST) Council, chaired by union finance minister Nirmala Sitharaman, held 54th meeting on September 9. Sitharaman, along with state finance ministers, held important discussions ranging from health insurance, GST on foreign airlines operating in India, rate cut on cancer drugs, and taxes on research funding.
With the aim to reduce the overall cost of cancer treatment in the country, the GST council has reduced the tax on cancer drugs from 12 per cent to 5 per cent.
Additionally, the council gave relief to foreign airlines operating in the country. Sitharaman announced a tax exemption to import of services by foreign airline companies.
The 18 per cent GST levied on life and health insurance became an important agenda for deliberation after it received backlash from various MPs protesting outside the Parliament. Hence, all eyes were on the GST council’s 54th meeting. Sitharaman announced the formation of a new group of ministers (GoM) headed by the deputy Chief Minister of Bihar on GST rate reduction on medical health insurance. The GoM has been given a target to submit its report by October-end. Following its report the council will make a final call in November.
“The GST council, which will meet in November, will finalize based on this report, which will come from the GoM,” said Sitharaman. Moreover, another GoM on compensation cess will be formed as well.
In order to give a boost to research, the council removed GST on research funding for universities and research centers established by the centre or state governments.
The council reduced the rate from 18 to 12 per cent on Namkeen snacks.
Apart from tax exemption and reduction, Sitharaman announced the increase in government revenue from online gaming has recorded an increase of 412 per cent post GST imposition. The government collected Rs 6,909 crore in just three months.