Union Finance Minister Nirmala Sitharaman on Monday chaired the 54th meeting of the GST Council, at Sushma Swaraj Bhawan, in New Delhi. After the meeting, Sitharaman, along with top Finance Ministry officials, held a press conference briefing about the decisions taken in the meeting.
"The 54th meeting of GST Council took several decisions. The Group of Ministers (GoM) on rate rationalisation and the GoM on real estate submitted status reports today. Status on online gaming and casinos was submitted. Revenue from online gaming has increased by 412% at Rs 6909 cr in 6 months," she said during the media briefing.
"2 new GoMs (Group of Ministers) have been decided. One is on the medical and health insurance. It will be the rate rationalisation GoM headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose. We have told them that they will look into this matter and come up with a report by the end of October 2024. The GST council which will meet in November will finalize based on this report which will come from the GoM," the Union Minister stated.
Here are highlights of decisions taken by GST Council
- GST Council reduces rate on cancer drugs to 5 per cent from 12 per cent
- Tax on namkeens (Snacks) reduced to 12 per cent from 18 per cent
- 2 new GoMs (Group of Ministers) have been decided. One is on the medical and health insurance.
- The GoM to look into the GST rate on life and health insurance will be headed by Bihar Deputy Chief Minister Samrat Choudhary, who is currently heading the panel on GST rate rationalisation. The GoM will be submitting its report by October end, she said.
- GST Council also agrees to form a GoM on compensation cess, says Sitharaman
- Sitharaman further said that a GoM will also be constituted to deal with the issue concerning compensation cess which will cease after March 2026.
- 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, says Sitharaman
- The Council also deliberated on the GoM's status report on rate rationalisation and online gaming.
- A committee of secretaries headed by Additional Secretary (Revenue) will be formed on the IGST which is currently facing a negative balance.
- "Prospectively, it has been decided to increase the rate on car seats from 18% to 28%. It has been decided to clarify that roof-mounted package units, air conditioning machines for railways, that attracts 28% of tax. Similarly, it has been recommended to notify GST at the rate of 5% on transportation of passengers by helicopters on seat sharing basis as is available also for air travel. On economy class, it has been decided to clarify that PLC or preferential location charges paid along with the consideration for construction services whether for residential, commercial or industrial will be also a part of composite supply of construction services liable to tax at the same rate," said Revenue Secretary Sanjay Malhotra.
