For a nation that should focus on creating more employable workforce and a higher Gross Enrolment Ratio, imposing GST on education does not seem the most logical move.
Until 2017, this was not really the case. In February 2017, the GST notification was made applicable to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.
This meant that all higher education institutions were brought under the service tax net, thus burdening the student. This was possibly the first time that a government differentiated between school education and higher education; between government education and private education.
Therefore, there was a need to do something and take a stand for the student community. This is when we decided to step in and make an appeal to the prime minister of India.
As released on page 1 of Mint, all India editions, on 6 November, 2017.
An appeal to Hon’ble prime minister of India
Remove GST on services rendered to all educational institutions
GST has increased the cost of education by 8%
Till February 2017, all educational institutions enjoyed an exemption of any kind of service tax on its expenditure, However, post Service Tax notification no. 10/2017 and later GST:
– Services like hostels, catering, security, transportation, visiting professors, consultants and even admission-related services relevant to conducting exams attract a GST at 18%. Even takers of JEE Advanced will pay GST at 18%.
– As institutions do not have any GST on income to adjust its Input tax credit, the increased cost is ultimately borne by the students.
Sir, educational institutions are meant to focus on academics and research and outsource most of these services. If India cannot provide funds for education, at the least let us not tax them.
TREAT HIGHER EDUCATION AT PAR WITH PRIMARY/SECONDARY EDUCATION.
WITHDRAW ALL DISCRIMINATORY NOTIFICATIONS.
Issued in interest of the student community’
Resource: Career 360