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GST Rates on Cancer Drugs Slashed to 5% for Affordable Treatment

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Synopsis:

The GST Council has reduced GST rates on cancer drugs from 12% to 5%, making treatment more affordable. The reduction was part of the 54th GST Council meeting, where other tax changes included lower GST on snacks and higher rates on car seats.

GST rates news today

In a significant decision aimed at reducing healthcare costs, the GST Council has reduced the Goods and Services Tax (GST) on cancer drugs from 12% to 5%. This reduction was finalised during the 54th GST Council meeting held in New Delhi, as part of broader efforts to make essential cancer treatment more affordable for patients across India.

Lowering cancer treatment costs

The reduction of GST rates on cancer drugs is expected to ease the financial burden on thousands of cancer patients. The previous 12% tax on these life-saving drugs added to the already substantial treatment expenses faced by patients and their families. By bringing the tax down to 5%, the cost of cancer medication is expected to drop significantly, helping many afford the necessary treatments without straining their finances.

Other major GST revisions

The GST Council has also made notable revisions in other sectors. The tax rate on selected snacks has been reduced from 18% to 12%, while the GST on car seats has been increased from 18% to 28%. Additionally, Roof Mounted Package Unit (RMPU) air conditioning machines for railways will now attract a GST rate of 28%, reflecting the government’s updated revenue policies.

Boosting research and education funding

The Council also introduced a new exemption, where funds granted for research purposes to universities established by Central and State laws, or those with income tax exemptions, will no longer be subjected to GST. This exemption is aimed at promoting more research activities across educational institutions in India, encouraging innovation and development.

Future prospects: Potential rate cuts for insurance

Looking ahead, the GST Council has initiated steps to explore the possibility of reducing GST rates on life and health insurance. A Group of Ministers (GoM) has been set up to evaluate these proposals, with a final decision expected by November. This review signals potential relief for policyholders, further aligning GST policies with public welfare.

The latest GST rate revisions, especially the cut on cancer drugs, are set to have a substantial impact on citizens, easing healthcare costs while adjusting taxes across various sectors. The Council’s focus on supporting essential services and goods reflects a broader approach to tax rationalisation in India.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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