Wed Sep 11 05:01:06 UTC 2024: ## GST Council Announces Major Changes to Tax Slabs: Cancer Drugs Cheaper, Namkeens Get Discount, Car Seats Pricier

**New Delhi, September 11, 2024:** The 54th GST Council meeting, held on Monday in New Delhi, saw significant changes to the Goods and Services Tax (GST) structure, impacting various sectors from healthcare to automobiles.

One of the most significant changes is the reduction of GST on certain cancer drugs from 12% to 5%. This includes drugs like Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, bringing relief to patients battling cancer.

Additionally, the supply of research and development services is now exempted from GST, benefitting government entities, research associations, and educational institutions engaged in scientific research.

Savoury snack lovers will be pleased to know that the GST on extruded/expanded savoury food products has been reduced from 18% to 12%, making namkeens cheaper. However, unfried/uncooked snack pellets will continue to attract a 5% GST.

The Council has formed a special group of ministers to address the contentious issue of the 18% tax on health and life insurance premiums. This group, consisting of representatives from several states, is expected to submit its recommendations by the end of October.

On the other hand, the GST on car seats has been increased from 18% to 28% to align with the GST rate on motorcycle seats, both now falling under the 28% slab.

Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways will now attract a 28% GST, while helicopter travel on a seat-sharing basis will be subject to a 5% GST. Chartering helicopters will continue to attract 18% GST.

The Council has also decided to exempt flying training courses conducted by the DGCA and approved Flying Training Organisations (FTOs) from GST. Further, import of services by foreign airlines companies will also be exempted from GST.

These changes are expected to impact various sectors and consumers, with some benefiting from tax reductions while others facing price increases. The GST Council will continue to review the tax structure and make necessary adjustments as required.

Read More