Money Matters

Here Are The Key Takeaways From The 53rd GST Council Meeting Check what gets cheaper and what gets costlier!

By Neha Mehrotra

The 53rd GST Council Meeting brought forth several pivotal decisions aimed at enhancing tax compliance, easing financial burdens, and promoting industry growth. During the 53rd GST Council meeting, Finance Minister Nirmala Sitharaman announced several significant measures. The session, chaired by Sitharaman and attended by state finance ministers, centred on tax amendments, Aadhaar-based biometric integration, and exemptions for railway services. Here are the key takeaways from the meeting:

1. Aadhaar-Based Biometric Authentication

In a proactive step aimed at tackling fraudulent activities like fake invoicing for unauthorised input tax credit (ITC), the council has authorised the nationwide deployment of Aadhaar-based biometric authentication. This significant decision underscores the pivotal role of biometric technology in fortifying tax compliance measures across the nation.

2. Indian Railways Exemption

The Finance Minister also announced the exemption of GST on several essential Railway Services aimed at benefiting the common man. This includes platform ticket sales, retiring rooms, waiting rooms, cloakroom services, and battery-operated car services. Additionally, intra-railway supplies will also be exempt from GST. These measures are designed to enhance affordability and accessibility for passengers, ensuring that essential railway facilities remain more accessible without additional taxation burdens.

3. Reduction in GST for Carton Boxes

In a strategic decision aimed at bolstering both manufacturers and consumers, the GST rate on various types of carton boxes has been reduced from 18% to 12%. This adjustment is poised to enhance affordability and competitiveness in the packaging sector, reflecting a proactive approach to supporting industry growth while benefiting end-users.

4. Exemption for Hostel Accommodation

The Finance Minister announced a significant exemption under GST for services related to hostel accommodation outside educational institutions, up to Rs 20,000 per person per month. This exemption also applies to student hostels situated apart from educational institutions. The council has proposed exempting accommodation services valued up to Rs 20,000 per person per month, provided they are availed of for a minimum continuous period of 90 days. This move aims to ease financial burdens on students and promote accessible housing options across the country.

5. Inclusion of Petrol and Diesel In GST

The central government reiterated its intent to bring petrol and diesel under the GST regime, contingent on reaching a consensus among states to determine the applicable tax rate. Additionally, a significant decision was made to reduce the GST rate on various types of carton boxes from 18% to 12%, a move designed to benefit both manufacturers and consumers.

By Neha Mehrotra
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By Neha Mehrotra

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