GST Council's Key Decisions on Healthcare and Tax Exemptions Await Final Nod

The GST Council has reached a consensus on reducing taxes on health and life insurance premiums, a decision to be finalized in November. Other key outcomes include reduced taxes on certain cancer drugs, exemption on R&D funds for universities, and considerations for a pilot B2C e-invoicing rollout.

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, announced significant decisions during its 54th meeting, primarily addressing healthcare tax reductions and exemptions for research funds. A final decision on the reduced taxes for health and life insurance premiums is expected in the November meeting.

The Council has decided to lower the tax rate on specific cancer drugs, including Trastuzumab Deruxtecan, from 12% to 5%, while increasing the GST on car seats from 18% to 28%. Other noteworthy decisions include a uniform 5% GST on passenger transport by helicopter and exemptions for flying training courses by DGCA-approved organizations.

A crucial move was the exemption of grants for R&D received by central or state-affiliated universities from GST, aligning with Prime Minister Narendra Modi's directives. An assessment of previous tax notices to such institutions will be conducted, and the remaining cases will be reviewed for regularization.

(With inputs from agencies.)