NEW DELHI: The 54th GST Council, which met under the Chairpersonship of Union Minister for Finance Nirmala Sitharaman, today recommended reducing the GST rate on cancer drugs, namely Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, from 12% to 5%.

The GST Council also recommended constituting a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on life insurance and health insurance and to submit the report by the end of October 2024. The Council is expected to review the report along with its revenue implications. Currently, these insurances are taxed at 18%, and a rate cut could significantly lower insurance costs for policyholders.

A release from the Finance Ministry said that the GST Council also recommended reducing the rate on Namkeen to 12% from 18%. "The GST rate of extruded or expanded products, savory or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through a process of extrusion), will be reduced from 18% to 12%, at par with namkeens, bhujia, mixture, chabena (pre-packaged and labeled), and similar edible preparations ready for consumption."

It further said, "The GST rate of 5% will continue on un-fried or un-cooked snack pellets, by whatever name called, manufactured through a process of extrusion."

To clarify, the reduced GST rate of 12% on extruded or expanded products, savory or salted (other than un-fried or un-cooked snack pellets, by whatever name called, manufactured through a process of extrusion), falling under HS 1905 90 30, is applicable prospectively.

After the meeting of the GST Council, Revenue Secretary Sanjay Malhotra said, "Prospectively, it has been decided to increase the rate on car seats from 18% to 28%. It has been decided to clarify that roof-mounted package units, air conditioning machines for railways, attract 28% tax."

He further said, "Similarly, it has been recommended to notify GST at the rate of 5% on the transportation of passengers by helicopters on a seat-sharing basis, as is available for air travel. For economy class, it has been decided to clarify that PLC or preferential location charges paid along with the consideration for construction services, whether for residential, commercial, or industrial purposes, will also be a part of the composite supply of construction services liable to tax at the same rate." 

During the media briefing after the meeting FM Sitaraman said that the council has also decided on funds given to central or state-affiliated universities and income exempted institutions will be exempted from paying the GST.