New Delhi: The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, made several significant decisions during its 54th meeting on Monday. The key outcomes are as follows:
- Formation of GoM for GST Rate Reduction: A Group of Ministers (GoM) will be established to review and potentially reduce the GST rates on life and health insurance. The GoM will be led by Bihar Deputy Chief Minister Samrat Choudhary, who also heads the panel on GST rate rationalization. The committee is expected to submit its report by the end of October.
- Reduction in GST Rates:
- Cancer Drugs: The GST rate on cancer drugs will be reduced from 12% to 5%.
- Namkeens: The tax rate on namkeens will be decreased from 18% to 12%.
- Compensation Cess: A new GoM will be constituted to address issues related to the compensation cess, which is scheduled to end in March 2026.
- Other Deliberations:
- The GST Council reviewed the GoM’s status report on rate rationalization and online gaming.
- A committee of secretaries, led by the Additional Secretary (Revenue), will be formed to address the negative balance in IGST and explore methods to recover funds from states.
These decisions reflect the Council’s ongoing efforts to address concerns related to GST rates and compensation mechanisms, impacting various sectors including healthcare and consumer goods.
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