GST Council Announces Key Decisions on Tax Rates for Health Insurance, Cancer Drugs, and More

The GST Council, led by Union Finance Minister Nirmala Sitharaman, decided to form a Group of Ministers (GoM) to review tax rates on life and health insurance and reduce GST on cancer drugs and namkeens. The GoM will report by October end and will address several taxation issues, including compensation cess.

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, has taken significant steps to address tax concerns, deciding to establish a Group of Ministers (GoM) to examine GST rates on life and health insurance, and to reduce tax rates on cancer drugs and namkeens.

Speaking to reporters after the Council's 54th meeting, Sitharaman announced that Bihar Deputy Chief Minister Samrat Choudhary would lead the GoM on GST rate rationalisation. New members will join the GoM to explore tax adjustments on health insurance, with a report expected by October end.

The Council also resolved to lower GST on cancer drugs to 5% from 12% and on namkeens from 18% to 12%. Additionally, a GoM will be set up to address compensation cess issues, which will end by March 2026. Deliberations also covered online gaming and a negative balance issue in the IGST.

(With inputs from agencies.)