GST impact: Education cost will go up!
The implementation of Goods and services Tax in India will hit the education sector as well. Most students will have to shell out more for studies, meanwhile some items like school bags, colouring books and notebooks will become cheaper.
The tax on services offered to educational institutions will result in fees hike. Most educational institutions buy services like security, transportation, catering and housekeeping from third-party service providers, so that, after the GST implementation, this will increase as attracted by 18% GST levy, which will reflect in higher fees.
Students will also have to pay more money for laundry, food in hostel mess, medicine, stationary. They also need to pay higher for and other services and products they buy on the campus. All such services will have a levy of 18 percent. To put it in figures, if a student pays Rs 2 lakh in a year for a course in a top college, he pays Rs 6,000 as tax. After July 1, he will have to pay Rs 30000 more in tax.
Another fact is that, tests and exams for admission to overseas colleges will also be subject to GST. The increased tax on non-conventional courses, certificate courses and training programmes are 18%.Coaching fees will also increase as a part of GST