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New GST Rate Adjustments for Products and Services Unveiled

New GST Rate Adjustments for Products and Services Unveiled

Union Finance Minister Nirmala Sitharaman chaired pre-Budget consultations with finance ministers of states and Union Territories to gather their views. This was followed by the 53rd meeting of the GST (Goods and Services Tax) Council.

The GST Council announced several exemptions. Services provided by way of hostel accommodation outside educational institutions are exempt from GST up to ?20,000 per person per month, provided the student has stayed in the hostel continuously for 90 days. This condition aims to prevent hotels from misusing the exemption.

Additionally, GST exemptions have been granted for the purchase of railway tickets and payments for waiting room and cloakroom charges. Services such as battery-operated vehicles and intra-railway services will also not be subject to GST.

The GST Council recommended a waiver of interest on penalties related to tax demand notices and established a uniform GST rate of 12% on milk cans.

During the pre-Budget meeting, Ms. Sitharaman emphasized the Centre's commitment to supporting states through timely tax devolution and clearing GST compensation arrears to stimulate growth. She encouraged states to take advantage of the scheme offering a 50-year interest-free loan from the Centre for undertaking specified reforms.

New GST Rate Adjustments for Products and Services Unveiled

New GST Rate Adjustments for Products and Services Unveiled

Union Finance Minister Nirmala Sitharaman chaired pre-Budget consultations with finance ministers of states and Union Territories to gather their views. This was followed by the 53rd meeting of the GST (Goods and Services Tax) Council.

The GST Council announced several exemptions. Services provided by way of hostel accommodation outside educational institutions are exempt from GST up to ?20,000 per person per month, provided the student has stayed in the hostel continuously for 90 days. This condition aims to prevent hotels from misusing the exemption.

Additionally, GST exemptions have been granted for the purchase of railway tickets and payments for waiting room and cloakroom charges. Services such as battery-operated vehicles and intra-railway services will also not be subject to GST.

The GST Council recommended a waiver of interest on penalties related to tax demand notices and established a uniform GST rate of 12% on milk cans.

During the pre-Budget meeting, Ms. Sitharaman emphasized the Centre's commitment to supporting states through timely tax devolution and clearing GST compensation arrears to stimulate growth. She encouraged states to take advantage of the scheme offering a 50-year interest-free loan from the Centre for undertaking specified reforms.

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