"GST Council Meeting: Here's What Will Get Cheaper"
Rate on cancer drugs such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab has been reduced from 12 to 5 percent.
Arpit Pattnaik
The GST Council announced tax cuts on several items and services during its 54th meeting. The reduced rates will be effective from the announcement date.
Here are the key changes:
1. Cancer drugs: The tax rate on specific cancer drugs, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, has been reduced from 12% to 5%.
2. Namkeens and savoury food products: The GST rate on namkeen and savoury food products will be reduced from 18% to 12%. Unfried or uncooked snack pellets will continue to be taxed at 5%.
3. Helicopter travel: Taxes on helicopter services for religious travel, such as Kedarnath and Badrinath, have been reduced from 18% to 5%.
4. Metal scrap: A Reverse Charge Mechanism (RCM) will be introduced on the supply of metal scrap by unregistered persons to registered persons. A TDS of 2% will be applicable on the supply of metal scrap by a registered person in B2B supply.
5. Car and motorcycle seats: The GST rate on car seats will be increased from 18% to 28% to bring parity with seats of motorcycles.
6. Research funds: Research funding for higher educational institutions and research centres will be exempt from GST.
Other decisions include exempting the import of services by foreign airline companies from related entities abroad, provided the transaction is without consideration.
The Council deferred the decision on the potential reduction in GST on health insurance premium. A Group of Ministers will examine the issue and give its recommendation by the end of October.
Additionally, another Group of Ministers will determine the treatment of collections from the compensation cess after its expiry.
