GST Council Exempts Hostel Accommodation Services Outside Educational Institutions

Nirmala Sitharaman informed that the Council has exempted services by way of hostel accommodation outside educational institutions.

Union Finance Minister Nirmala Sitharaman addresses a press conference after the 53rd GST Council Meeting, in New Delhi, Saturday, June 22, 2024. (PTI Photo)

New Delhi: During the 53rd GST Council Meeting, Union Finance Minister Nirmala Sitharaman said that the Council has recommended prescribing 12% Goods and Service Tax (GST) on all solar cookers whether it has single or dual energy sources.

Nirmala Sitharaman informed that services provided by the Indian railways like the sale of platform tickets, facility of retiring rooms, and waiting rooms, are exempted from GST.

She also said that the Council has exempted services by way of hostel accommodation outside educational institutions to the tune of Rs 20,000 per person per month. It is meant for students or working class and exemption can be availed only if the stay is up to 90 days.

“Hostels which are for students outside of educational institutions are also being exempted. The council has recommended exempting accommodation services having a value of supply up to Rs 20,000 per person per month. These services are supplied for a minimum continuous period of 90 days,” said the finance minister.

The GST Council has recommended a reduction of GST on carton boxes from 18 pc to 12 pc.

Himachal Pradesh has been persistently pleading for the reduction of GST on apple carton boxes and this reduction will help both horticulturists and the industry in saving costs, a statement issued in Shimla said.

Industries Minister Harshwardhan Chauhan, representing the State, thanked the council for taking the decision unanimously on the proposal of the state. He said that the decision would also help the industry reduce working capital costs.

(With PTI inputs)




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