GST Slashed on Cancer Medicines and Helicopter Services for Pilgrims, Online Gaming Revenues Surge

The Finance Minister announced that the Goods and Services Tax (GST) on cancer drugs has been reduced from 12% to 5%, with the aim of reducing the overall cost of cancer treatment.

By Gaurav Santosh Sep 9, 2024, 21:06 IST

NEW DELHI — The 54th meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman, brought several key decisions, including tax reductions on cancer drugs and select snacks. The Finance Minister announced that the Goods and Services Tax (GST) on cancer drugs has been reduced from 12% to 5%, with the aim of reducing the overall cost of cancer treatment.

In addition, the tax rate on certain snacks (namkeen) has been cut from 18% to 12%. The council also granted exemptions to government-affiliated educational institutions from GST, providing relief to the sector.

Relief for Pilgrimage Helicopter Services

During the meeting, Uttarakhand Finance Minister Prem Chand Aggarwal announced that the GST on helicopter services used to transport pilgrims to holy sites like Kedarnath and Badrinath has been reduced from 18% to 5%. Previously, there was confusion regarding the tax on such services, but the council has now provided clarity.

Online Gaming and Casino Revenues Surge

In her address, Sitharaman highlighted that revenue from online gaming saw a staggering increase of 412% in the last six months, reaching ₹6,909 crore. She noted that the council was presented with reports on the rationalization of rates and real estate, as well as updates on casino and online gaming revenues. Revenue from casinos also witnessed a 30% growth.

Health Insurance GST Decision Postponed

Although there were expectations that GST on health insurance might be removed, the decision has been postponed. A group of ministers will assess the GST rates on health insurance and is expected to present its report by the end of October.

Small Digital Transactions Under Review

The council also discussed imposing 18% GST on payment aggregators like BillDesk and CCAvenue for digital transactions up to ₹2,000 using debit and credit cards. Currently, transactions under ₹2,000 are exempt from GST. This issue has been referred to the tax recommendation committee for further review.

The council’s decisions mark significant changes in tax rates aimed at easing the burden on certain sectors, while also addressing revenue surges in areas like online gaming and casinos. More updates on health insurance and digital transactions are expected in the coming months.