While ‚Äòeducation‚Äô continues to be of utmost importance for the country‚Äôs economic growth, it also has been a priority for the Government in extending tax benefits and other concessions to boost education in the country.
Goods and Services tax (GST), rolled out on July 1, is an indirect tax throughout India to replace multiple taxes levied by the central and state governments.
How GST gonna affect tuition fee?
For every benefit received, there is a cost which could be in form of tax also.¬†Perhaps this seemed never so real than today in the Indian context.¬†The much thoughtful leaders of India have spared the education sector all along from levy of taxes considering the importance of the same for the country. 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. Campus food, medicine, transport, and other on-campus products or services will now be taxed at 18 per cent.
The impact will also be felt for students who opt for coaching classes and non-conventional courses.¬†So, if the fee of a professional course is Rs 1 lakh, you will now have to pay Rs 18k more instead of Rs 15k you paid earlier. Tests for admission to overseas colleges will also be subject to GST.
Will GST also affect cost of living?
In a metropolitan city like Delhi,¬†which has a large number of students coming from across the country to pursue higher education, the impact of GST is¬†inevitable.¬†Some government colleges’ fee may not increase but these students need transport, mess and canteens, hostels and many other services, where the impact of GST can be seen. Hence, their living costs are likely to get affected. Food-related expenses, especially dining out, will cost me much more now. Outstation students usually prefer dining out, or eating in canteens and dining halls, so they will be affected by GST. Even watching movies at multiplexes will become more expensive