GST Council Recommends 12% On Milk Cans, Platform Tickets & Hostels Exempted, Says Sitharaman
6 months ago |
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Union Finance Minister Nirmala Sitharaman on Saturday chaired the 53rd meeting of the GST Council along with her state counterparts in New Delhi. During the meeting, she suggested recommendations pertaining to taxation and tax exemption on services provided by the Indian Railways, battery operated car services, hostel accomodation provided to students, and biometric-based Aadhar authentication to curb fake invoicing.

Sitharaman also stated that the Centre was focused on bringing petrol and diesel under GST and it was up to the states to decide the GST rate on fuel.

During a press conference after the GST Council meeting, the Union Finance Minister said that the council recommended to prescribe a uniform rate of 12 percent on all milk cans.

“The council has recommended to prescribe a uniform rate of 12 per cent on all milk cans. This will be the rate applicable. They have a standard shape so that will determine what is a milk can and what is not. The council has also recommended to prescribe a uniform GST rate of 12 per cent on all carton boxes and cases. This will particularly help the apple growers of Himachal Pradesh and Jammu and Kashmir,” Union Finance Minister Nirmala Sitharaman said, during the press conference after the GST Council meeting.

Services Provided By Indian Railways To Common Man Exempted

The Finance minister stated that the Council recommended to exempt services provided by the Indian Railways to the common man such as sale of platform tickets, battery operated car services, and retiring and waiting rooms.

“On services, there are just two points which I will highlight. Services provided by the Indian Railways to common man, sale of platform tickets, facility of retiring rooms and waiting rooms, battery operated car services are being exempted from GST,” she said.

Further, intra-railway supplies will also be exempted.

Sitharaman also stated that the hostel accomodations inside the educational institutions were already exempted from GST. Now, the hostel accomodations outside the educational institutions will also get exempted, she said.

Hostels Outside Educational Institutions Exempted

“The other, which is very important, service by way of hostel accommodation is presently not exempted, which are provided to students if they are outside of educational institutions. If they are within the educational institutions, then they are already exempted. Hostels which are for students which are within an educational institutions are already exempted. Now hostels which are for students but are not in an educational institutions are also getting exempted.” Sitharaman said during the press conference.

However, there is a condition that the hostel accomodation must be up to Rs 20,000 per month per person, and the student must have stayed in that facility for a period of 90 days continuously.

“The measure of relief for students and working professionals, the council has recommended to exempt accommodation services having a value of supply up to Rs 20,000 per person per month. The condition of course is those provided these services are supplied for a minimum a continuous period of 90 days,” the Finance minister said at the press conference.

The meeting was held after a gap of eight months, after the 52nd GST Council meeting on October 7, 2023.

At the pre-budget meeting with state ministers, Nirmala Sitharaman also underlined Centre’s support to states through timely tax devolution and GST compensation arrears to stimulate growth, an official statement stated.

She also nudged states to avail the advantage of the Centre’s scheme that gives 50-year interest free loan for undertaking specified reforms.

ALSO READ: Sitharaman Says Centre Will Provide Support To States Via Timely Tax Devolution, GST Compensations, Grants

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