Here’s How GST Would Affect The Education System In India.

India as a developing country is still striving very hard to attain 100% primary and secondary education. It is one of the most important arena of our country and the government has been taking various initiatives to ensure that the citizens get much better and affordable education. Education is a fundamental right in our country, but due to the inaccessibility of schools, unaffordability by the parents, and negligence of few, it is still suffering in many remote areas and this in turn stops many capable students from receiving the kind of exposure that they deserve.

As a basic right, everybody is entitled to equal education, and the government invests 4% of the countries GDP in education, of which 50% is directed towards the primary education. With the new GST rolling in, the major effect would be on the common man. Though the basic food items like Vegetables, flour, bread, milk and eggs remain unaffected, the prices of cashew nuts, ghee, butter, cheese and other packaged food items would increase.

If we talk about the education sector, then the government promises to keep the primary and secondary education exempted from GST so that more people would be able to receive better education in the country.

Other educational facilities that have been exempted from GST are as follows:-

    Primary education

1. Transportation to students, faculty and staff

2. Catering services

3. House- keeping charges

4. Examination and admission fees

    Higher education

1. Services provided by IIM- two year full time post-graduation in management made on the basis of Common Aptitude Test (CAT)

2. Fellow program in management

3. Five year integrated program in management

    Skill development facilities

1. Services offered by the national Skill Development Corporation, Government of India

2. Sector Skill Council approved by National Skill Development Corporation

Nirmal Singh Lotus correctly points out that where these points have been specified under the GST, there is no specification for the coaching and tuition services and thus, it stills remains a blur point whether the tax would be the same 14.5% or whether it would fall under the 12-18% slab rate.

For the parents who are afraid of the inflatory effect, they need not worry too much about the extra expenses, says Nirmal Singh Lotus, it is just about how you invest your money in different areas, about how proportionately you spend your budget. And as far the education is concerned, the government itself has put in a lot of thought about it and have made sure that GST does not, in any way discourage people of getting primary or higher education.