New Delhi: Finance Minister Nirmala Sitharaman presided over pre-Budget consultations with finance ministers of states and Union Territories today, followed by the 53rd meeting of the GST Council. During the council meeting, significant decisions were made to streamline GST exemptions and rates across various sectors.
One notable decision was the exemption of GST on services related to hostel accommodation outside educational institutions, capped at ₹20,000 per person per month, provided the student has stayed continuously for 90 days. This measure aims to prevent misuse by commercial entities posing as hostels.
Furthermore, the council exempted GST on the purchase of railway tickets, payments for waiting rooms, and cloakroom charges. Additionally, services like battery-operated vehicles and intra-railway services will also be GST-free.
In response to ongoing tax demands, the GST Council recommended waiving interest on penalties, aligning with a uniform 12 percent GST rate on milk cans.
Earlier in the day, Minister Sitharaman emphasised the Centre’s commitment to supporting states through timely tax devolution and clearing GST compensation arrears to bolster economic growth. She encouraged states to leverage the scheme offering a 50-year interest-free loan for implementing specified reforms.
