Union Finance Minister Nirmala Sitharaman revealed on Monday that the GST Council has made significant decisions regarding tax rate adjustments on certain goods and services. During the 54th GST Council meeting, which Sitharaman chaired, it was announced that the GST rates on some cancer drugs have been reduced from 12% to 5%. This move is intended to alleviate the financial burden on patients and make critical medications more affordable.
Additionally, the GST rate on Namkeen, a popular Indian snack enjoyed across various regions, has been lowered from 18% to 12%. This reduction aims to benefit both consumers and producers by making this everyday product less expensive and more accessible.
In her briefing, Sitharaman highlighted the remarkable growth in revenue from online gaming, which has surged by an impressive 412% over the past six months. This increase, amounting to Rs 6,909 crore, underscores the booming popularity of online gaming and its significant impact on the economy. Furthermore, revenue from casinos has also seen a substantial rise, growing by 34% during the same period.
Regarding health insurance, Sitharaman noted that the GST Council has decided to establish a new Group of Ministers (GoM) to evaluate potential reductions in GST rates for health insurance. The GoM will be tasked with reviewing the current tax structure and making recommendations for adjustments. This committee is expected to submit its report by the end of October, with further deliberations on the matter scheduled for the GST Council's next meeting in November.
Overall, the recent decisions by the GST Council reflect a strategic approach to tax policy aimed at addressing the needs of specific sectors and improving affordability for consumers. These adjustments are part of ongoing efforts to optimize the GST framework and respond to evolving economic conditions and market demands.
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