The GST Council, chaired by Finance Minister Nirmala Sitharaman, has approved critical tax exemptions during its recent meeting, offering relief to the healthcare and banking sectors. Among the notable decisions are exemptions for gene therapy and penal charges imposed by banks.
Source:- bbc news
Gene Therapy Exemption
Recognizing the importance of cutting-edge medical treatments, the council has exempted gene therapy from GST. This move aims to make life-saving treatments more accessible and affordable for patients requiring advanced therapies. It aligns with the government’s focus on supporting healthcare innovation and reducing treatment costs in critical areas.
Source:- news 18
Penal Charges by Banks
The council also decided to exempt penal charges levied by banks for non-maintenance of minimum balances from GST. This decision addresses a long-standing concern of consumers and ensures that such charges are treated as penalties rather than taxable services. This exemption is expected to bring clarity and reduce disputes between banks and taxpayers.
Other Updates
The council deliberated on several other measures, including streamlining GST compliance for small businesses and resolving classification disputes. It continues to focus on reducing the compliance burden and improving the ease of doing business.
These exemptions underscore the GST Council’s efforts to promote equitable taxation while addressing key concerns across sectors. By eliminating GST on gene therapy and bank penalties, the council aims to foster fairness in the tax system and ease financial burdens on individuals and businesses alike.
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