The GST Council, led by Finance Minister Nirmala Sitharaman, has decided to set up a Group of Ministers (GoM) to review tax rates on life and health insurance, cancer drugs, and snacks.
New GoMs and Tax Cuts
The GoM on insurance will be led by Bihar Deputy Chief Minister Samrat Choudhary. The council aims to ease the 18% GST on health and life insurance premiums. It will also cut GST on cancer drugs from 12% to 5% and on namkeens (selected snacks) from 18% to 12%.
Compensation Cess and Other Changes
The council will form a GoM to review the compensation cess, set to end after March 2026. The total cess collection is projected to reach Rs 8.66 lakh crore, with an expected surplus of Rs 40,000 crore after repaying loans.
Revenue Secretary Sanjay Malhotra announced that GST on services imported by foreign airlines will be exempt. Universities and research centres established by government laws or with tax exemptions will also get GST relief on research funding.
The council introduced a new business-to-customer (B2C) GST invoicing system, effective October 1. GST on car seats will increase from 18% to 28%.
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