GST Council Reduces Tax on Cancer Drugs and Namkeens, Plans to Review Medical Insurance Rates
The GST Council, which met on Monday, decided to reduce the GST rate on certain cancer drugs from 12% to 5%. These drugs include Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. The GST rate on namkeens and savory items has also been reduced from 18% to 12%.
Universities and research centers established by law or with income tax exemptions can now receive research funds without paying GST. A Group of Ministers (GoM) will review GST rates on medical insurance and report by October, with the GST Council finalizing decisions in November.
Finance Minister Nirmala Sitharaman explained the extensive discussions on whether to reduce or exempt GST on medical insurance, especially for senior citizens. The GoM, led by the Deputy Chief Minister of Bihar, will provide a detailed report.
The GST Council also recommended forming a GoM to study the future of compensation cess. Additionally, the GST rate on helicopter passenger transport has been reduced to 5%, while the rate on car seats has been increased to 28% to match the rate for motorcycle seats.
Doubts Revealed
GST Council -: The GST Council is a group of people in India who decide how much tax should be charged on different things. GST stands for Goods and Services Tax.
Cancer Drugs -: These are medicines used to treat cancer, a serious disease where cells in the body grow uncontrollably.
Namkeens -: Namkeens are salty snacks that people in India love to eat, like bhujia, sev, and chivda.
Medical Insurance -: This is a type of insurance that helps pay for medical expenses if you get sick or hurt.
Group of Ministers -: This is a small team of important government officials who look into specific issues and make recommendations.
Helicopter Passenger Transport -: This means using helicopters to carry people from one place to another.
Car Seats -: These are the seats inside a car where people sit.
Finance Minister Nirmala Sitharaman -: She is the person in charge of managing the money and finances of the Indian government.
GST -: GST stands for Goods and Services Tax, which is a tax you pay when you buy things or use services.
Exempt -: This means not having to pay a certain tax or fee.
Universities and Research Centers -: These are places where people study and do research to learn new things and make discoveries.