The meeting was attended by key officials from the finance ministry, along with finance ministers from various states.
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Key takeaways
1. Status of GST on Online Gaming and Casinos
Finance Minister Nirmala Sitharaman announced that following the announcement of GST on online gaming, there has been a 412 per cent jump in revenue, as per a status report submitted to the fitment committee.
2. On medical insurance premium
The FM announced that the council has decided to form new GoM on GST rate reduction on medical health insurance set up. It will be headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose. It has been asked to submit its report by October-end. “The GST council which will meet in November will finalize based on this report which will come from the GoM,” Sitharaman said.
3. GST on cancer drugs slashed
Finance Minister Nirmala Sitharaman stated that the reduction in GST on cancer drugs from 12% to 5% is aimed at further reducing the overall cost of cancer treatment.
4. Namkeen snacks to get cheaper
The GST council has decided to slash tax on selected snacks from 18% to 12%.
5. Relief for foreign airlines
The Goods and Services Tax (GST) Council at its 54th meeting in New Delhi on Monday decided to exempt import of services by foreign airline companies.
6. Govt established Universities exempted
Universities and research centers established by central or state government laws, or those granted income tax exemptions, will now be exempt from paying Goods and Services Tax (GST) on research funding.
Announcing the decision, the government clarified that these institutions can receive research funds from both public and private sources without being liable for GST.
7. GoM on cess
During the GST Council meeting, it was revealed that the total cess collection projected until March 2026 stands at Rs 8.66 lakh crore. After settling the loan payments, a projected surplus of around Rs 40,000 crore is expected.
Sitharaman confirmed that the position on compensation cess was thoroughly discussed in the meeting. She said that a GoM will be formed to decide on purpose of the cess, way forward after March 2026, if the cess has to be collected after the said period as it cannot be called Compensation cess.
8. On IGST
The GST Council, led by Finance Minister Nirmala Sitharaman, discussed key issues related to the Integrated Goods and Services Tax (IGST) balance.
The GST panel decided to set up a committee headed by the Additional Secretary of Revenue, who will address the negative IGST balance, focusing on retrieving excess IGST disbursed to states.
9. On rate rationalisation
The Group of Ministers (GoM) presented their status report on rate rationalisation during today’s GST Council Meeting. FM Sitharaman stated that the GoM will convene on September 23 to discuss the same
10. Renting of commercial property
The GST panel has also decided to bring renting of commercial property by unregistered person to a registered person under Reverse Charge Mechanism (RCM), in order to prevent revenue leakage.
Other decisions
The GST panel led by Nirmala Sitharaman also decided to introduce Business-to-Customer (B2C) GST invoicing. This new system for GST invoice management will take effect from October 1.
It was also announced to surge GST on car seats from 18 per cent to 28 per cent.
The GST panel also clarified that Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28 per cent.