India’s biggest tax reform, GST was finally implemented yesterday midnight after all the hullabaloo. As explained by the government the intention of GST is to simplify the taxation process by eliminating the multiple taxation systems and replacing it with a single tax, which will also have its impact on the education sector. The education sector has from always been a vital segment; the nation’s objective is to provide the best quality education to the children, who are the future of our nation.
According to GST, products like colouring books, exercise books, notebooks, crayons will come under the bracket of 12% whereas, for pens and school bags, it would be 18%. Some of the education institutes also get the exception from GST and same goes for some traditional courses. However, some of the services that would be exempted from the GST as per the GST Act are as follows:
- Services provided by the training providers (Project implementation agencies) under Deen Dayal Upadhayaya training courses certified by National Council for Vocational Training.
- Services of assessing bodies empanelled centrally by Directorate General of Training Ministry of Skill Development and Entrepreneurship by way of assessments under Skill Development Initiative Scheme.
- Services by way of training activities relating to arts or culture or sports by charitable entities registered under section 12AA of Income Act, 1961
GST for sure will get lot many changes in every sector and education is no exception. As this particular sector has from always been a sensitive one which has enjoyed various benefits of exceptions, let’s see with GST how does it differ. Hoping the best for the economy and the nation on the whole let’s see how what benefits will GST get for the education sector.