GST Council Grants Exemptions and Adjusts Rates for Various Products

The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, has made significant decisions to provide exemptions and adjust tax rates for a range of products during its 50th meeting held in New Delhi.

As part of these decisions, cancer-fighting drugs, medicines for rare diseases, and food products designed for special medical purposes will be exempted from the Goods and Services Tax (GST) regime. This move aims to facilitate access to essential medical treatments and support individuals with specific healthcare needs.

Furthermore, the GST rates for certain items have been revised. Uncooked and unfried extruded snack pallets will now attract a reduced tax rate of 5 percent, down from the previous 18 percent. Similarly, fish soluble paste will also be taxed at 5 percent, instead of the previous 18 percent. Additionally, the tax rate on imitation zari threads has been reduced from 12 percent to 5 percent.

In other developments, the Council has decided to impose a 28 percent tax on online gaming, horse racing, and casinos. Furthermore, the GST exemption for satellite launch services will now include private operators, recognizing the importance of the space industry and encouraging its growth.

These decisions by the GST Council aim to enhance the efficiency and fairness of the tax system while addressing specific sectoral needs and promoting accessibility to essential goods and services. The adjustments in tax rates reflect the Council’s efforts to strike a balance between revenue generation and the interests of various industries.