GST Council Meeting 2024: Major Tax Relief for Cancer Drugs, Pilgrims, and More
By: Admin | September 11, 2024 | Categories: GST Recent News | 4 Min Read
New Delhi – Key Updates from the 54th GST Council Meeting
The 54th Goods and Services Tax (GST) Council Meeting, chaired by Finance Minister Nirmala Sitharaman, introduced several important changes. These updates aim to reduce tax burdens and address industry concerns. Consequently, they impact various sectors and offer relief to both consumers and businesses.
1. Reduced GST on Cancer Drugs
The GST Council has reduced the tax on essential cancer treatments, such as Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, from 12% to 5%. This adjustment will alleviate the financial burden on cancer patients and their families. As a result, patients will find critical treatments more affordable, which should provide significant relief.
2. Exemption for R&D Activities
Furthermore, the Council has granted an exemption for research and development (R&D) activities funded by private and public sources, including universities. This decision is designed to encourage investment in innovation and support advancements across various sectors. Thus, this move is expected to boost research and development efforts.
3. Reduced GST on Helicopter Travel for Pilgrimages
In addition, the GST on helicopter services used for religious pilgrimages, such as trips to Kedarnath and Vaishno Devi, has been lowered to 5%. This reduction aims to make spiritual journeys more accessible and affordable for devotees. Therefore, more people will be able to undertake these pilgrimages.
4. Lower GST on Namkeens and Snacks
Moreover, the GST rate on namkeens and other savory snacks has been decreased from 18% to 12%. This change addresses classification disputes within the food industry and seeks to ease operational challenges for producers. Consequently, both producers and consumers will benefit from this adjustment.
5. New GST Provision for Metal Scrap Transactions
To further address revenue leakage, GST under the Reverse Charge Mechanism (RCM) will now apply to metal scrap transactions between unregistered and registered persons. This update aims to enhance compliance and prevent tax evasion. Hence, businesses should prepare for this new requirement.
6. Increased GST on Car Seats
Additionally, the GST on car seats has been increased from 18% to 28%, aligning it with the rate for motorcycle seats. This adjustment seeks to resolve classification disputes and ensure uniform tax rates. Therefore, the change will standardize tax treatment across different vehicle parts.
Conclusion: Streamlined GST Compliance and Relief
In summary, these updates from the 54th GST Council Meeting are designed to simplify GST compliance, reduce litigation, and provide financial relief across various sectors. The Council will continue to refine the GST system to better serve consumers and businesses.
For ongoing updates on GST policies and their impacts, stay tuned to our coverage.
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