53rd GST Council meeting: Exemption for student hostels, railway services and more

 


53rd GST Council meeting: Exemption for student hostels, railway services. Tax rates cut on milk cans, solar cookers

The Goods and Services Tax (GST) Council, the federal indirect tax body, on Saturday decided to reduce tax rates on some items such as milk cans and solar cookers, signalling an end to anti-tariffs. Finance Minister Nirmala Sitharaman said after the 53rd Council meeting in New Delhi that a number of steps have been taken to abolish price gouging and ease trade.


The council has also decided to reduce tax rates on items such as milk cans, solar cookers (whether they have one or two energy sources), cartons, crates, wooden boxes used for packing fruits, etc. to 12% from 18%.

The indirect tax body has also exempted hostel stays of more than 90 days in non-educational institutions from GST, Sitharaman said. Hostel stays in educational institutions are already exempt from GST, she added. The exemption announced on Saturday applies to hostel fees up to Rs 20,000 per person per month. "This is aimed at students who stay for 90 days at a time, but not tourists," the minister said.

Tax rates on many mass-produced items have come down significantly after the introduction of GST and subsequent successive cuts in the new tax regime.

Wheat flour and atta, which were taxed at 3.5% before GST, and sanitary napkins, which were previously taxed at 12%, will no longer be taxed under GST. Unbranded Ayurvedic medicines, which were previously taxed at 12%, are now taxed at 5%. Tax rates on detergents, televisions and cosmetics have also come down to 18% from 28%. According to data from the Central Board of Indirect Taxes and Customs (CBIC), mobile phones, electrical appliances, washing machines and refrigerators, which were taxed at over 31 per cent before the implementation of GST, are now taxed at 18 per cent. The council has exempted Indian Railways' platform cards, toilets, cloakrooms and battery-operated bus services from GST. Services provided by special coaches during the concession period to Indian Railways will also not be subject to GST. Sitharaman said the council would meet again in August.

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