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FG News

GST and Its Effect on Education Sector

04 Jul 17

Considering education as a base of the economy, Indian government has taken few necessary steps to make the GST much friendly to this crucial sector. It has been a fundamental right since the Right of Children to Free and Compulsory Education Act was passed by the Parliament in 2009. Thus, it is the country’s foremost duty to ensure the provision of and accessibility to low cost, quality education.

The GST council has asked the government to exempt the education- though with conditions applied. The GST Council administered no shocks while releasing the rates of GST applicable to services, and continued to exempt education. As per the Revenue Secretary Hasmukh Adhia, the council of GST has recommended to the government that whatever is the existing exemption list for service tax they should continue because they cannot do too many things at the same time.

According to the Government data, in India both government and private organizations operate as education providers. However, the sector has tax exemption leverages in order to push for maximum literacy with maximum coverage. These exemptions only apply to education from the pre-school level, up to higher secondary, imparting a curriculum for obtaining a qualification.

 Content: yourstory.com


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