Finance Minister Nirmala Sitharaman chaired pre-Budget consultations with finance ministers of states and Union Territories to gather their views. Following this, the 53rd meeting of the GST (Goods and Services Tax) Council took place yesterday.
The GST Council made several key decisions:
- Services provided by hostels outside educational institutions are exempt from GST for accommodation up to Rs 20,000 per person per month, provided the student stays in the hostel for at least 90 continuous days. This condition aims to prevent hotels from misusing the exemption.
- Purchase of railway tickets and payments for waiting room and cloak room charges are now exempt from GST. Additionally, services like battery-operated vehicles and intra-railway services are also GST-exempt.
- The Council recommended waiving interest on penalties related to tax demand notices and proposed a uniform GST rate of 12 per cent on milk cans.
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During the pre-Budget meeting, Ms. Sitharaman emphasized the Centre’s commitment to supporting states through timely tax devolution and clearing GST compensation arrears to foster growth. She also encouraged states to utilize the scheme where the Centre offers a 50-year interest-free loan for undertaking specified reforms.