How GST affected the education sector?
Said to be the greatest tax reform of the country, the goods and service tax; GST will have an significant impact on the education sector as well.
GST was released by the Prime Minister Narendra Modi in the Parliament's historic Central Hall, in the presence of President Pranab Mukherjee. The very basic aim of GST is of making the taxation process simpler by removing the concept of multiple taxes.
Education being an important sector of the economy will also be affected by rolling out of GST, as providing quality education is an important aim of the nation.
As per the notifications and announcements, GST on colouring books, exercise books, notebooks, and crayons will be 12 percent. Whereas, the GST on stationary items like pens and school bags will be 18 percent. Coaching institutes for the competitive exam will face a major challenge as they will face the GST of 18 percent.
However, some of the services related to education sector are exempted under GST.