The 54th meeting of the Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, concluded at Sushma Swaraj Bhawan in New Delhi on Monday. The meeting focused on key proposals related to health insurance, online payments, foreign airlines, and other crucial sectors. Here are the major highlights from the session:
Status of GST on Online Gaming and Casinos
Finance Minister Sitharaman reported a significant increase in revenue collection, with a 412% jump following the implementation of GST on online gaming, as per a status report submitted to the fitment committee.
Formation of GoM on Health Insurance Premium
A new Group of Ministers (GoM) has been set up to study GST rate reduction on health insurance premiums. The GoM, led by Bihar’s Deputy Chief Minister, has been tasked to submit a report by October-end, with a final decision expected during the November GST Council meeting.
Reduction in GST on Cancer Drugs
In a relief for cancer patients, the council has decided to reduce GST on cancer drugs from 12% to 5%, aimed at making cancer treatment more affordable.
Cheaper Namkeen Snacks
Selected snacks will now attract a lower GST rate, with the tax reduced from 18% to 12%, providing relief to consumers.
GST Exemption for Foreign Airlines
The Council approved the exemption of GST on the import of services by foreign airline companies, providing them relief from the tax burden.
Exemption for Government-Established Universities
Universities and research centers established by central or state government laws, or those granted income tax exemptions, will now be exempt from GST on research funding. The exemption covers research funds from both public and private sources.
Cess Collection and Future Projections
The GST Council revealed that the total projected cess collection until March 2026 stands at ₹8.66 lakh crore, with a projected surplus of ₹40,000 crore after settling loan payments. A GoM will be formed to decide on the purpose and continuation of cess collection beyond 2026.
Addressing Negative IGST Balance
A committee, led by the Additional Secretary of Revenue, has been established to address the issue of negative IGST balance. The focus will be on retrieving excess IGST disbursed to states.
Rate Rationalisation
The GoM presented its status report on rate rationalisation, and a follow-up meeting has been scheduled for September 23 to discuss further measures.
Other Major Decisions
B2C GST Invoicing: A new system for Business-to-Customer (B2C) GST invoicing will be introduced starting October 1.
GST on Car Seats: The GST rate on car seats has been increased from 18% to 28%.
Classification of RMPU Air Conditioning Machines: Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways will be classified under HSN 8415, attracting a GST rate of 28%.
