Govt Exempts Indian Railway and Accommodation Services from GST
From July 15, railway services and accommodation under Rs 20,000 per month are exempt from GST, easing costs for public
New Delhi: In line with the goods and services tax (GST) Council's decision, the government on Wednesday announced that accommodation services less than or equal to Rs 20,000 per person per month and services provided by the ministry of railways to the general public have been exempted from GST with effect from July 15.
“Services provided by the Ministry of Railways (Indian Railways) to the General Public have been exempted under GST w.e.f. 15.07.2024. Similarly, Accommodation Services less than or equal to Rs 20,000/- per person per month has been exempted from GST w.e.f. 15.07.2024," Central Board of Indirect Taxes and Customs (CBIC) under the Union finance ministry said in post on X (formerly Twitter).
In its 53rd GST Council meet, the GST Council had approved measures to ease compliance for small businesses, exempted hostel accommodation worth up to Rs 20,000 a month as well as railway services, and resolved to reconvene in August to initiate parleys on re-jigging the multiple rates levied under the seven-year old indirect tax.
Apart from the GST exemption for hostel accommodation outside the campuses of educational institutions, which finance minister Nirmala Sitharaman had said that it would benefit students across India, especially those from rural areas. As far as railway services are concerned, the GST Council had also proposed exemption for specific services offered by Indian Railways to the general public, as well as for intra-railway transactions. “The sale of platform tickets and services such as retiring rooms, waiting rooms, cloakroom facilities, and battery-operated car services are now exempt from GST,” it had said.