GST Council Meeting: GoMs To Address Tax Rates And Compensation Cess, Tax On Cancer Drugs, Namkeen Reduced
The GST Council is chaired by Finance Minister Nirmala Sitharaman and comprises of state ministers.
(GST Council Meeting)
GST Council Meeting: Key Highlights
Sitharaman announced the formation of two new groups of ministers that will address the issues related to tax rates and compensation cess.
GST rates on specified cancer drugs have been reduced from 12% to 5%, and that on namkeen and similar savoury items has been decreased from 18% to 12%.
The council has slashed tax on research grants for universities and other research institutions.
Sitharaman addressed various questions from states concerning insurance policies. It involved whether to provide tax exemptions or to entirely abolish the tax. Since there were various groups involved, she highlighted the complexities of implementation.
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GST Council Meeting: Exemption To Research Grants Will Ensure More Money Flow Into R&D, Says Expert
“While the decision on a lower rate or exemption for health insurance is expected by November, it is expected that the decision would consider all forms of health/ medical insurance including family floaters, group policies, optional add-on coverages etc. so that insurance companies have clarity on the changes they need to incorporate, “according to MS Mani, Partner at Deloitte India.
He also added that the exemption given to research grants will ensure that more money flows into the R&D activity.
GST Council Meeting: States Have Shown Interest To Host GST Council Meet, Says Sitharaman
Nirmala Sitharaman said that many states have requested to host GST Council meeting— Telangana, Meghalaya and Kerala among them.
Council will take a decision on which state will host the meeting, she said.
Source: GST Council meet
GST Council Meeting: FM Sitharaman Outlined New B2C e-Invoicing Initiative
Finance Minister Sitharaman spoke about the new B2C e-invoicing initiative. It will initially allow suppliers to voluntarily use a portal similar to the existing B2B invoicing system to issue invoices. This system will enable customers to review their invoices and facilitate the issuance of refunds, she said.
Currently, it is a pilot project, but it is expected to help reduce tax evasion and assist the customs department in its operations, Sitharaman said.
Source: GST Council meet
GST Council Meeting: Support From All States Regarding Tax Exemption On Research Grants
FM Sitharaman highlighted that all states including the West Bengal finance minister supported her decision on GST exemption on research grants.
Source: GST Council meet
