GST is going to be implemented from July 1. Although education has not been kept under the purview of GST, it will have huge effect on the crores of students and their parents even in the country.
Tell that on June 12, the Government of students giving relief school bags to 18 per cent from 28 per cent GST rate. At the same time , she decided not to take any tax on children’s painting books , which was 12 percent earlier. But there are still all such provisions in GST, which can make education expensive.
Put a look:
Coaching fees are expensive
Coaching other than school, college is the practice of the whole country. A large number of students take coaching in the country for admission in engineering and medical colleges. Now coaching will increase from 15% to 18% GST.
For example, if a student gives one lakh rupees for coaching in the admission test of medical examination, then from July 1, it will be given as 15 thousand rupees instead of 18 thousand rupees.
Non-Conventional, Tax on Certificate Course
Traditional courses, such as BA, BCom, BSc, have been excluded from the new tax structure. But the rate of tax on the second non-conventional course, certificate course and training program will increase from 14% to 18%.
In such a case, if you are paying 1 lakh rupees for any computer certificate course, then you have to pay a tax of 18 thousand rupees on it from July 1 to 14 thousand. GST will be applied in other countries as well as on education fees.
The services offered in colleges are expensive
The effect of the GST will also be on the services offered in educational institutions. In most colleges, services like transportation, catering, housekeeping are taken from the third party. In this case, instead of 15%, it will now be taxed at 18%, which will make it expensive.
However, services like transportation, catering, housekeeping, from Nursery to 12th are not within the purview of GST. But higher education institutions, such as colleges, universities will get service tax at the rate of 18 per cent.
Messing in food, laundry is expensive
Not only that, if a student is staying at the college campus, then he needs to have a mess, laundry and stationery service. All such services will be expensive, because tax will be 18% instead of 15%.