Minister Thangam Thennarasu Urges GST Exemption on Commercial Rents to Ease Business Burden

Tamil Nadu Finance Minister Thangam Thennarasu recently emphasized the need for GST exemption on commercial rents during the 55th Goods and Services Tax (GST) Council meeting held in Jaisalmer, Rajasthan. The minister pointed out that businesses are facing significant challenges under the current system, where they are required to pay GST on commercial rents under the reverse charge mechanism. Thennarasu stressed that this system is putting undue financial pressure on businesses, particularly those that are already struggling due to market fluctuations and other economic challenges.

Thennarasu proposed a shift in policy to alleviate this burden by providing an exemption for GST on commercial rental payments. By doing so, businesses, especially small and medium enterprises (SMEs), would benefit from cost reductions, which could help improve their financial viability and sustainability. The minister’s plea for exemption gained support from several states, with stakeholders highlighting its potential to boost business growth and contribute to economic recovery.

Additionally, Thennarasu advocated for a reduction in GST rates for cancer treatments, particularly for CAR-T cell therapy, to make life-saving medical procedures more accessible. He recommended reducing the GST rate on CAR-T cell therapy from 12% to zero to help reduce treatment costs for cancer patients.

The minister also emphasized the importance of effective management information systems and clear guidelines to address the issue of state attribution for online services, ensuring the correct state taxes are applied. This proposal is expected to streamline the process and make it more efficient for businesses engaging in e-commerce.

The 55th GST Council meeting was attended by senior officials from various states, including the GST Commissioner of Tamil Nadu, who participated in discussions on the proposed changes and other key issues related to taxation and business relief.