The education sector in India, as an uncompromising factor, is the fundamental requirement for the growth of the society. Whether it is a private or government school, both hold an equal amount of importance in the rise of the educated people in India since past few decades. We all know what our history was. And we also are well aware of the fact that landing on the surface of opportunities was not done overnight. The act of getting people of the nation free following the launch of the constitution of India required a strenuous effort that could not be explained in words yet the results are visible. And the fact that we proudly call ourselves democratic is a testimony of the hard work done in the past.
Now you cannot really understand what being democratic really is if you are not educated. Thus education is important, not only to understand the concept of democracy but also to identify the available opportunities and use them to better yourself and ultimately, the nation as well. Although, the implementation of the new tax regime in India has built a bridge that fundamentally merges the education with the taxation and creates an effect. Moving on further, we’ll bring the contrast on the GST effects on education, that whether they are positive or negative.
The Indian government has always seen the education sector as an important asset where the future of the nation lies. That is why, the education sector, as of always, enjoys a considerable exemption from the hassles of taxation, thus having an easier functioning structure for the teachers as well as the parents. Post implementation, the education sector has been relieved from the GST. Here are the impacts that the new tax regime made on the education/higher education in India:
As it is a clear fact that the education is not only about the students, the government has also exempted the services related to education as per the India GST rules. Here is the list:
Some of the education provided by the institutions are also exempted from the GST regime when it comes to India’s GST exemption for small business.
Although, the education is important, there are various other things that are associated with the education sector and cannot be relieved from the GST regime. These services are:
While the basic requirements of the services in the education sector are kept GST-free by the government, the education in the private institutes will see a slight rise in the prices. But, if the effects of the Goods and Services Tax on other aspects of businesses are taken into account, then it could be easily comprehended that the education sector is still in a big relief with minor tax implications that were necessary anyway as they involve external services. Hence, the government has kept the education intact and engaging, thus ensuring a brighter future for the nation.