News Mania Desk/ Agnibeena Ghosh/23rd June 2024
Union Finance Minister Nirmala Sitharaman recently chaired pre-Budget consultations with state finance ministers and Union Territories, followed by the 53rd meeting of the GST Council. During the session, several key decisions were made to streamline GST regulations and provide relief in various sectors.
One of the significant announcements from the GST Council includes the exemption of GST on services related to hostel accommodation outside educational institutions, up to ₹20,000 per person per month. However, this exemption applies under the condition that the student has stayed continuously in the hostel for at least 90 days. This measure aims to prevent misuse of the exemption by commercial establishments posing as hostels.
Additionally, the purchase of railway tickets and payments for waiting room and cloak room charges have been exempted from GST, offering relief to travelers. Services such as those provided by battery-operated vehicles and intra-railway services will also be exempt from GST, further easing financial burdens.
Furthermore, the GST Council recommended waiving interest on penalties for tax demand notices and established a uniform GST rate of 12 percent on milk cans, aiming for consistency and simplification in tax policies.
During the pre-Budget consultations, Finance Minister Sitharaman emphasized the Centre’s commitment to supporting states through timely tax devolution and clearing GST compensation arrears. She encouraged states to take advantage of the scheme where the Centre provides interest-free loans for 50 years to facilitate specified reforms, underscoring the importance of cooperative federalism in economic growth and development.
These decisions by the GST Council are expected to have a positive impact on various sectors, easing compliance burdens and promoting transparency in taxation. The exemptions and uniform tax rates aim to create a more conducive business environment while ensuring fairness and efficiency in tax administration.
As India prepares for the upcoming Budget and continues to navigate economic challenges, these measures reflect ongoing efforts to streamline taxation policies and support economic recovery. Stakeholders across sectors will be closely monitoring further developments following these recent GST Council decisions, anticipating their impact on businesses and consumers alike.
