The council has recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on the life insurance and health insurance.The GoM members are Bihar, UP, West Bengal, Karnataka, Kerala, Rajasthan, Andhra Pradesh, Meghalaya, Goa, Telangana, Tamil Nadu, Punjab, and Gujarat. The GoM is to submit the report by end of October 2024.
New Delhi:Disappoing the insurance industry and health insurance customer, the GST Council deferred any decision to remove or reduce the 18 per cent tax on life and health insurance policies.
The council has recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on the life insurance and health insurance.
The GoM members are Bihar, UP, West Bengal, Karnataka, Kerala, Rajasthan, Andhra Pradesh, Meghalaya, Goa, Telangana, Tamil Nadu, Punjab, and Gujarat. The GoM is to submit the report by end of October 2024.
However,the council has decided to reduce tax rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab to 5 per cent from 12 per cent.
With an aim to ensure less burden on the taxpayers, the 54th GST Council meeting on Monday had deliberated on a slew of issues, including rate rationalisation, taxation of insurance premiums, online gaming, and more.
The meeting was expected to deliberate upon whether to reduce the tax burden on health insurance from the current 18 per cent or exempt certain categories of individuals, like senior citizens.
In the last fiscal, the Centre and states collected Rs 8,262.94 crore through GST on health insurance premiums, and Rs 1,484.36 crore on account of GST on health reinsurance premiums.
The Council has clarified that GST rate on car seats classifiable under 9401 to be increased from 18 per cent to 28 per cent. This uniform rate of 28 per cent will be applicable prospectively for car seats of motor cars in order to bring parity with seats of motorcycles which already attract a GST rate of 28 per cent.
Welcoming the GST Council’s reduction in tax rates on essential cancer drugs, experts on Tuesday said that it is a crucial step and will make life-saving medicines more affordable and accessible to patients.
“This move marks a crucial step in making life-saving treatments more affordable for patients battling cancer,” Dr Pritam Kataria, Consultant, Medical Oncology, Sir H.N. Reliance Foundation Hospital, told IANS.
“With the incidence of cancers rising significantly this is a welcome move and further will increase the confidence of patients in the treatment system,” he added.
Cancer treatment can get expensive due to the long duration of treatment and the high cost of drugs, especially in cases where the drug needs to be imported as in the case of immunotherapy or targeted therapy.
“The slash in GST will allow more patients in India to receive the standard care. With the new treatment coming in reducing the side effects of therapy and improved responses this will improve the outcome in the patient,” Kataria said.
The three drugs — Trastuzumab deruxtecan are used for breast cancer, Osimertinib for lung cancer drug for EGFR mutation, and Durvalumab for lung and biliary tract cancers. Deruxtecan drug can be used in all cancers with Her2 positive gene.
The government had also exempted customs duty on these three cancer drugs in the Union Budget 2024-25.
“We welcome the GST Council’s decision to lower the GST on cancer drugs to 5 per cent. With the increasing burden of chronic diseases in India, this is a move toward making life-saving drugs accessible and improving health outcomes,” said Sudarshan Jain, Secretary General, of the Indian Pharmaceutical Alliance.
“This much-needed GST cut can also improve access to advanced cancer treatments, reduce the financial burden on patients and their families, and potentially improve treatment outcomes by allowing more patients to benefit from these drugs,” Dr. Ashish Gupta, Medical Oncologist and Chief of Medical Oncology at Unique Hospital Cancer Centre in New Delhi told IANS.