GST Council exempts hostel fees, platform tickets, and more from GST. Hostels under Rs 20,000/month are exempt. Nirmala Sitharaman announces tax exemptions for employee stock options. System reworked to prevent fraud by bogus entities. The move will also benefit thousands of students and working people staying in paying guest accommodations.
NEW DELHI: GST Council on Saturday decided to
exempt
all hostel fees, platform ticket,
railway
waiting room and golf cart charges as well as employee stock options from payment of tax, while reworking the system to register for the tax regime to check frauds by bogus entities.
While
hostels
run by education institutions were already exempt from GST, finance minister Nirmala Sitharaman said now all hostels will be exempted from the levy provided the monthly charges are under Rs 20,000 per person and the occupant stays at the facility for at least 90 days.
The move will also benefit thousands of students and working people staying in paying guest accommodations. There was relief for corporate guarantees, reinsurance, where certain clarifications have been issued, and for e-commerce players, too, as the tax collected at source on net taxable supplies will be halved to 0.5%.
There were clarifications allowing 12% tax on all types of milk cans, solar cookers and paper cartons. Further, compensation cess on supply of aerated beverages and energy drinks to authorised customers by defence canteens have also been exempted.
The all-powerful body comprising the Union and state FMs also recommended amendments to the CGST Act for not levying tax on extra neutral alcohol used for manufacture of alcoholic liquor for human consumption.
