Hi, people. Have you read the previous post related to GST rate and its impact and how it will help us? If not, Read it here. GST-How will it help us.
What is GST all about?
The GST stands for goods which are an indirect tax.It is ultimately imposed upon the final consumers. There are two types of taxes namely direct and indirect. The direct tax includes income tax and wealth tax while indirect tax includes customs, service tax, central excise etc. In a country like India’s education ‘is given top most priority while receiving tax benefits.
Impact on Education Sector
Almost about 4% GDP of the country is spent on this sector itself and almost 50% on the primary education. Currently, GST is one of the most important taxes which has been imposed. So far it is known that the minimum rate of GST shall be 5% and maximum rate will be 28% altogether four rates of indirect tax there stare 12% and 18%. GST shall have impacts on the citizens of the nation especially students and generally in the educational sector.
The education sector attracts the service tax as per the laws but it was under the ‘negative list’ to make it more affordable to the education seekers. Degree courses in colleges, universities or institutions which lead to the grant of qualifications recognized by law are also in the negative list. But now basic accessories are even in the indirect tax(GST)
rates. It would have been better if education sector would have been kept outside the circumference of GST. Now coaching fee is subjected to 18% tax. Institutions are also under the taxation rule.
The institutions would now have to pay the taxes for a wide range of services for the students with the dilution of the objective of keeping education aside from the GST circle. As we know that it enhances the progress of a nation. India is still a developing nation after so many years of independence. Once education is made tax
free, it will be profoundly accessible. It is therefore recommended that education should be exempted from taxes. Education is a necessity and not luxury after all.