The GST or Goods and Services Tax was launched at midnight at a function in Central Hall of Parliament on Friday 30th June 2017. The biggest tax reform since Independence is changing the indirect tax landscape of the country, subsuming over a dozen separate central and state taxes.
So what does it have in store for students?
Higher education may soon become more expensive than they bargained for. “From 15 per cent service tax it is going up to 18 per cent which will burden extracurricular activities, books and everything else. This is going to be an added burden on the parents especially who has children’s for higher studies.
Under GST, education in pre-schools and schools continues to remain tax free. However, services offered by colleges and universities will now be taxed at 18 per cent compared to the earlier 15 per cent. This tax could make campus food, medicine, transport, and other on-campus products or services more expensive.
That’s not all; the impact will also be felt for students who opt for coaching classes and non-conventional courses, which will also attract a 3 per cent hike under the GST.
“Education is a bare necessity today and students are now left with no choice but to pay more to get quality education. Other concern is that there are many students who don’t come from financially strong backgrounds, increased taxes may affect them badly.
My own perception certainly is that education sector as a blanket should have been either left free of GST or not charged more than a 3, 4 or 5 per cent tax,” said Naveen Chopra, Chairman, Education counselling firm The Chopra’s .
However, not everyone agrees. Educationists such as CP Shrimali, Acting Director, MDI Gurgaon, believes GST in long run will have a positive impact on the economy as well as the education sector.
GST is the biggest tax reform since Independence. It is a great change of the indirect tax landscape of the country. It has subsumed over a dozen central and state taxes. more
The real estate developer community has been raising concern about how the GST will be an unmanageable burden as the land may be doubly taxed. more
The GST impact on the service sector of India could be inflationary for the short term. This is because the tax rate would immediately shoot up to 18 percent. more
Under the GST regime supply chain agencies have to undertake more tasks to get into the GST system. This is because the government has already brought an e-way bill system and also e-invoicing is in progress. more