Union Finance Minister Nirmala Sitharaman convened a series of meetings starting with pre-Budget consultations with state finance ministers and Union Territories. The discussions were followed by the 53rd GST Council meeting, where several impactful decisions were announced.

One of the key decisions taken by the GST Council was the exemption of GST on services provided by hostels outside educational institutions, up to ₹20,000 per person per month. To qualify, students must have resided in the hostel continuously for at least 90 days, aimed at preventing misuse of the exemption by commercial establishments.

Furthermore, GST exemptions were extended to the purchase of railway tickets, as well as payments for waiting room and cloak room charges. Additionally, services such as battery-operated vehicles and intra-railway services will now be exempt from GST.

The Council also recommended the waiver of interest on penalties related to tax demand notices, along with establishing a uniform GST rate of 12% on milk cans.

During the pre-Budget consultations, Minister Sitharaman emphasized the Centre's commitment to supporting states through timely tax devolution and clearing GST compensation arrears to stimulate economic growth. She encouraged states to leverage the Centre's offer of interest-free loans over 50 years for implementing specified reforms.

These developments underscore significant steps towards simplifying tax compliance and enhancing economic resilience through strategic fiscal policies.