The 54th GST Council meeting, held in New Delhi on Monday (September 9, 2024) announced several changes to the existing Goods and Services Tax (GST) slabs. The most notable among these was the reduction in cancer drugs.
The Council decided to reduce the GST rate on cancer drugs Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 12% to 5%.
The Council has also recommended to exempt the supply of research and development services from GST. This includes research and development services by a government entity, research association, university, college or other institution, notified under Section 35 of the Income Tax Act, 1961, which deals with expenditure on scientific research.
Namkeens, or savoury snacks, will also become cheaper after the GST on extruded/expanded savoury food products is reduced from 18% to 12%. Unfried/uncooked snack pellets will continue to attract a GST rate of 5%.
The Council has formed a group of ministers to look into the matter of an 18% tax on premiums paid for health and life insurance policies, which has been an area of contention between political parties. The group includes members from Bihar, U.P., West Bengal, Karnataka, Kerala, Rajasthan, Andhra Pradesh, Meghalaya, Goa, Telangana, Tamil Nadu, Punjab, and Gujarat, and is expected to submit its report by the end of October this year.
Meanwhile, GST on car seats will be increased from 18% to 28%. The increase has been approved to ensure parity in costs of car and motorcycle seats, both of which are now in the 28% GST slab.
Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways will attract a GST rate of 28%.
A GST of 5% will be levied on helicopter travel on seat-sharing basis. Chartering helicopters will continue to attract 18% GST.
There will be no GST on flying training courses conducted by DGCA and approved Flying Training Organisations (FTOs). Within the aviation sector, import of services by an establishment of a foreign airlines company will also be exempted from GST.
Published - September 11, 2024 09:17 am IST
