- GST rates on certain cancer drugs have been cut from 12% to 5%.
- Health insurance GST reduction to be discussed in the next GST Council meeting.
- Revenue from online gaming surged by 412% in the last six months.
What’s behind the changes in GST rates?
In a major decision, the Union Finance Minister, Nirmala Sitharaman, announced that the GST Council has reduced the Goods and Services Tax (GST) rates on certain cancer drugs, offering relief to patients battling the costly disease. This move was part of the discussions held during the 54th GST Council meeting. The GST on cancer drugs has been cut from 12% to 5%, which is expected to make these life-saving medications more affordable for patients and their families.
Alongside this, the council also reduced the GST on namkeen (snacks) from 18% to 12%, bringing down the cost of this popular snack category. However, one important topic that has been postponed is the discussion on lowering GST for health insurance. Minister Sitharaman mentioned that this will be addressed in the council’s next meeting, scheduled for November.
How does this impact cancer patients and the healthcare sector?
The decision to reduce GST on cancer drugs comes as a significant relief to cancer patients, who often face expensive treatment costs. Reducing the tax from 12% to 5% will likely make these medicines more affordable, potentially improving access to crucial treatments. The reduction could also ease some of the financial burden on families affected by cancer, who often struggle with high healthcare costs.
While this decision was met with positivity, the delay in addressing the GST rate for health insurance leaves room for concern. Many had hoped for an immediate reduction, as it could lead to lower premiums and more accessible health coverage. For now, individuals will need to wait until November for a decision on this front.
Conclusion: Encouraging moves, but more awaited
The GST Council’s decision to reduce taxes on cancer drugs is a step in the right direction for making essential healthcare more affordable. It also reflects the government’s focus on critical healthcare needs. However, with the decision on health insurance postponed, many are still waiting for broader reforms that could make healthcare more accessible and affordable in India.
In other news from the council meeting, the government highlighted a dramatic increase in revenue from online gaming, which rose by 412% in just six months. This indicates the growing popularity and financial impact of online gaming in India. The council’s ongoing discussions signal that more changes, especially around the GST structure, could be on the horizon in the coming months.
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