📷 Image Credits: The Times of India
The Goods and Services Tax (GST) Council recently announced several relief measures on various products and services used by the middle class in India. In its 53rd meeting, the council decided to exempt rents up to Rs. 20,000 per month paid for accommodation outside college campuses. Additionally, services such as platform tickets, waiting room, and cloakroom facilities in railway stations have been exempted from GST as well.
Finance Minister Nirmala Sitharaman mentioned that the GST exemption on hostel accommodation is aimed at benefiting students or the working class, provided that the stay is up to 90 days. Previously, rent on hostels outside campuses attracted a 12% GST.
Furthermore, the council reduced the GST on cartons to support apple farmers in Himachal Pradesh and Jammu and Kashmir. All milk cans will now be taxed uniformly at a rate of 12%, regardless of the material they are made of.
In a move to aid taxpayers, the council recommended trade facilitation measures, including penalty waivers on demand notices issued during the initial three years of the GST rollout. However, contentious issues such as GST on fuel products, online gaming, and insurance premium rates were not discussed during the meeting.
Additionally, the council recommended waiving interest and penalties for demand notices that were issued under Section 73 of the GST Act, provided they do not involve fraud, suppression, or misstatements.
Sitharaman highlighted other important decisions taken by the council, such as the exemption of services provided by Indian Railways to the general public, reduction of pre-deposit amounts for filing appeals under GST, and rationalization of GST rates on various goods.
Overall, the recent GST Council meeting focused on providing relief to taxpayers, easing compliance burdens, and introducing taxpayer-friendly measures to improve the tax system in India.
