New Delhi, Sep 9 (IANS) The GST Council, headed by Finance Minister Nirmala Sitharaman, on Monday announced setting up a Group of Ministers (GoM) on slashing the tax rate on life and health insurance, as well as reducing the GST on cancer drugs and ‘namkeens’ (selected snacks).
The GoM on life and health insurance will be headed by Bihar Deputy Chief Minister Samrat Choudhary, who is currently heading the panel on GST rate rationalisation.
The 54th GST Council meeting reached a “broad consensus” to bring relief to individuals and senior citizens with a decision on the GST applied to health insurance premiums.
The current GST rate on health and life insurance policies stands at 18 per cent.
Meanwhile, the GST Council announced to reduce the GST rate on cancer drugs to 5 per cent from 12 per cent and on namkeens to 12 per cent from 18 per cent.
The members also agreed to form a GoM on compensation cess.
“The GST Council has agreed to form a GoM which will now take it up to study and decide on how to move forward on compensation of cess which will cease after March 2026,” said FM Sitharaman.
The total cess collection projected until March 2026 stands at Rs 8.66 lakh crore.
After settling the loan payments, a projected surplus of around Rs 40,000 crore is expected.
Revenue Secretary Sanjay Malhotra said that the GST compensation cess may be discontinued post-debt repayments.
At a press conference after the meeting, Malhotra also said import of services by foreign airline companies will be exempt from GST.
Universities and research centres established by central or state government laws, or those granted income tax exemptions, will now be exempt from paying GST on research funding, said FM Sitharaman.
The GST panel also decided to introduce business-to-customer (B2C) GST invoicing. This new system for GST invoice management will take effect from October 1.
It was also announced to surge GST on car seats from 18 per cent to 28 per cent.
–IANS
na/vd
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
