Union Finance Nirmala Sitharaman chaired pre-Budget consultations with finance ministers of states and Union Territories to take their views. It was followed by the 53rd meeting of the GST (Goods and Services Tax) Council on June 22, 2024.
GST Council exempts services by way of hostel accommodation outside educational institutions up to ₹ 20,000 per person per month. However, the condition will be the student must have stayed in the hostel for a continuous period of 90 days. The condition has been introduced to prevent hotels from taking advantage of the exemption.
Purchase of railway tickets and payments for waiting room and cloak room charges have been exempted from GST. Similarly, no GST will be levied on services provided like battery-operated vehicles and intra-railway services.
The GST council recommended waiver of interest on penalties on tax demand notice, and a uniform rate of 12 per cent on milk cans.
In the pre-Budget meeting, Ms Sitharaman underlined the Centre's support to states through timely tax devolution and GST compensation arrears to boost growth.
She asked states to take advantage of the scheme under which the Centre gives 50-year interest-free loan to states for undertaking specified reforms.
