railways-hostels-gets-gst-relief-sitharaman

In a significant development following the formation of the new government at the Centre, the GST Council has announced crucial tax relief measures affecting various sectors.

 

This announcement came after the 53rd meeting of the GST Council, held on Saturday, which was chaired by Union Finance Minister Nirmala Sitharaman.

 

This session marks the first GST Council meeting since October 2023, and precedes the forthcoming full Union budget expected next month.

 

The Council's decisions aim to ease the tax burden on individuals and businesses, targeting sectors such as railways, education, agriculture, and housing. Key exemptions and tax reductions were introduced to support these areas, along with measures to enhance compliance and curb tax evasion.

 

Key Decisions and Exemptions

 

1.Railway Services: Several services provided by Indian Railways have been exempted from GST. These include the sale of platform tickets, retiring rooms or waiting rooms, cloak room services, and battery-operated car services.

 

Intra-railway transactions are also exempt from GST, expected to lower operational costs significantly.

 

2.Community Hostels: Accommodation services provided to students outside educational institutions will now be exempt from GST, given that the rent is up to ₹20,000 per person per month and the accommodation is supplied for a minimum continuous period of 90 days.

 

This is aimed at preventing tax evasion by short-stay hotels masquerading as hostels. Notably, students residing within campus institutions were already exempted from GST.

 

3.Support for Agriculture and Daily Essentials:

 

Apple Growers: The GST rate on cartons, boxes, and cases of both corrugated and non-corrugated paper or paperboard has been reduced from 18% to 12%, providing relief to apple growers in Jammu & Kashmir and Himachal Pradesh.

 

Milkmen: GST on all types of milk cans, whether made of steel, iron, or aluminum, has been standardized at 12%.

 

Household Items: Households will benefit from a uniform GST rate of 12% on all types of solar cookers, regardless of whether they use single or dual energy sources. Additionally, all types of sprinklers, including fire water sprinklers, will also attract a 12% GST, benefiting the housing sector.

 

Union Finance Minister Nirmala Sitharaman emphasized that these decisions are aimed at facilitating trade, easing the compliance burden, and providing relief to taxpayers, particularly traders and MSMEs. "The Council has taken a lot of decisions on trade facilitation, easing compliance burden, and giving relief to taxpayers... So this will benefit traders, MSMEs, and taxpayers," she stated.