News Brief
Tax Rates Changed For Certain Goods And Services At GST Council Meeting: Here's All You Need To Know
FM Sitharaman in a press conference after the 53rd GST Council Meeting
Union Finance Minister Nirmala Sitharaman on Saturday (22 June) chaired pre-Budget consultations with finance ministers of states and Union Territories.
The meeting aimed to gather their views ahead of the Union Budget.
It was followed by the 53rd meeting of the Goods and Services Tax (GST) Council.
In the GST Council meeting, several key decisions were taken to address various tax exemptions and reforms:
Services by way of hostel accommodation outside educational institutions have been exempted from GST for charges up to Rs 20,000 per person per month. However, this exemption applies only if the student has stayed in the hostel for a continuous period of 90 days. This condition aims to prevent hotels from misusing the exemption.
The purchase of railway tickets and payments for waiting room and cloak room charges have been exempted from GST.
The GST Council recommended a waiver of interest on penalties for tax demand notices.
A uniform GST rate of 12 percent has been set for milk cans.
During the pre-Budget meeting, Sitharaman emphasised the Centre's commitment to supporting states through timely tax devolution and GST compensation arrears to bolster growth.
She urged states to take advantage of the scheme under which the Centre provides a 50-year interest-free loan for undertaking specified reforms.
