The Central Government has decided to lower the Goods and Services Tax (GST) on health insurance policies. This decision was discussed during a meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman. Additionally, the panel has discussed proposals imposing a tax on online payments exceeding Rs 2,000 and providing relief to foreign airlines from GST.
The meeting, which included key officials from the Finance Ministry as well as finance ministers from various states, also addressed other significant decisions. The GST Council is expected to provide a report on reducing GST for insurance policies by the end of October. A decision on the recommendations from the Group of Ministers (GoM) will be made at the GST Council meeting scheduled for November.
Following this, the Central Government has also decided to reduce GST on cancer medications from 12% to 5%. Furthermore, a cabinet sub-committee will be formed to decide whether to continue the GST compensation cess beyond March 2026, as determined in the GST Council meeting.
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