The GST Council has decided to reduce the rate on cancer drugs from 12 per cent to 5 per cent.

Union Finance Minister Nirmala Sitharaman on Monday chaired the 54th meeting of the Goods and Services Tax (GST) Council. A number of decisions related GST rate rationalisation and tax exemptions were taken during the meeting.

In a press conference after the meeting, Sitharaman said that GST on following cancer drugs was reduced: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

The GST was reduced from 18 per cent to 12 per cent on namkeen, said Sitharaman.

The issue of health insurance premiums was, however, not addressed in the meeting. The issue will be taken up in the next meeting of the GST Council.

Here are other key takeaways from the 54th GST Council meeting:

Research funds exempted from GST

Sitharaman announced that the GST Council decide to exempt research funds from GST. She said that government as well as private universities will be exempted from GST on government as well as private grants.

Sitharaman said the decision was taken unanimously.

“Universities and research centers which have been established by a law of the central government. Two, universities and research centers established by a law of the state governments or those which have obtained income tax exemption can receive research funds both from public which is government and from private and they shall not pay GST. They are exempted from paying the GST,” said Sitharaman, as per Moneycontrol.

GoM set up for GST rate on health insurance

The much-awaited decisions on tax rate rationalisation on health insurance premiums was not taken in the GST Council meeting.

Instead, a group of ministers (GoM) has been set up to study the issue which will submit the report by October-end and the GST Council will take up the issue in its next meeting in November based on the report, said Sitharaman.

The GoM will be headed by Bihar Deputy Chief Minister Samrat Choudhary, who also holds the finance portfolio and heads the GST rate rationalisation panel.

Exemption for foreign airlines

The GST Council decided to exempt the import of services by foreign airlines.

GST hiked on car seats

The GST Council increased the GST on car seats from 18 per cent to 28 per cent.

Previously, the GST on bike seats was 28 per cent and tax on car seats was 18 per cent. Now, there will be uniform tax on seats.

Tax on online payments not discussed

The issue of taxing aggregators on online payments was not discussed in the GST Council meeting.

IGST committee to submit report by October

A committee to study the issue of IGST will submit the report by October, said Sitharaman.

“A committee of secretaries will be formed to explain on how to take IGST forward. Today we have negative balance on IGST. The committee will be formed under additional secretary in revenue. There is excess IGST given to states will have to be retrieved. The modus operandi of IGST may be explained to states if needed. The committee will have officials from states and centre,” said Sitharaman.

Renting of commercial properties to have reverse charge mechanism

Renting of commercial properties has been brought under reverse charge mechanism, said Revenue Secretary Sanay Malhotra.

5% GST on shared helicopter services

The GST Council decided to have 5% GST on helicopter services on sharing basi

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GST Council reduces rate on cancer drugs to 5%, exempts research funds from tax — key takeaways