In a recent GST Council meeting held in Delhi, a noteworthy decision was made to reduce the tax on three types of cancer drugs from twelve percent to five percent. This move follows the complete waiver of customs duty in the last Union Budget and represents a positive step towards lowering the cost of expensive cancer treatments. However, similar tax adjustments for medicines targeting other terminal diseases remain unaddressed, largely due to the entrenched influence of pharmaceutical giants and multinational monopolies. Despite some progress, the pharmaceutical sector's pricing practices continue to be dominated by these powerful entities.

There was anticipation for a decision to lower GST on health life insurance policies, but this issue remains unresolved. The council has instead formed a ministerial committee to further deliberate on the matter. On a positive note, the meeting decided to make research funds for educational institutions completely tax-free—a significant achievement. Additionally, the GST on certain food items has been reduced from 18 to 12 percent.

Conversely, the tax on seats for cars and two-wheelers will increase from 18 percent to 28 percent. This decision is perplexing given the rising vehicle prices and warrants further examination. A new ministerial committee has been established to review the GST on vehicles.

The demand to include petrol and diesel under GST was not addressed, primarily because no state is interested in such a move. Fuels are a major revenue source for states, and they are unlikely to support higher taxes on liquor either. Including petroleum products under GST would likely have capped the tax rate at 28 percent, compared to the additional cess imposed by states like Kerala.

The country's GST revenue has seen significant growth. However, the cessation of compensation grants to states, which were introduced to mitigate revenue shortfalls when GST was first implemented, has adversely affected states like Kerala. The request to extend these compensations was not entertained. Moreover, inconsistencies arising from the Finance Commission's revised resource-sharing norms and the need for further adjustments in GST slabs reflect ongoing challenges. There is a pressing need for a more people-friendly GST structure that addresses these deficiencies and better aligns with evolving economic realities.