Union Finance Minister Nirmala Sitharaman on Monday said the GST Council has decided to reduce the rates on some cancer drugs to five percent from 12 percent. The Council also reduced the rate on namkeen to 12 per cent from 18 per cent, she said, adding that the Council will take a call on reduction in rate on health insurance at the next meeting in November.

Sitharaman, who chaired the 54th meeting of the GST Council said that the revenue generated from online gaming has increased by 412 per cent in the last six months. “The Group of Ministers (GoM) on rate rationalisation and the GoM on real estate submitted status reports today. Status on online gaming and casinos was submitted. Revenue from online gaming has increased by 412 per cent at Rs 6,909 crore in six months,” she said.

Besides this, the Minister said that the revenue from casinos went up by 34 per cent in the last six months. On health insurance, Sitharaman said that the GST Council has decided to set up a new GoM on rate reduction, which will submit its report by October-end.

“Two new GoMs have been decided. One is on the medical and health insurance. It will be the rate rationalisation GoM headed by the Deputy Chief Minister of Bihar but with newer members added for this limited purpose. We have told them that they will look into this matter and come up with a report by the end of October 2024. The GST council which will meet in November will finalise based on this report which will come from the GoM,” Sitharaman said.

Briefing reporters on the outcome of the 54th GST Council meeting, Sitharaman said it has decided to have a Group of Ministers (GoM) to look into the GST rate on life and health insurance. The GoM will be headed by Bihar Deputy Chief Minister Samrat Choudhary, who is currently heading the panel on GST rate rationalisation.

Sitharaman further said that a GoM will also be constituted to deal with the issue concerning compensation cess which will cease after March 2026.