Govt denies education will be expensive in GST regime

Speed Post News Network

New Delhi : The Central Government on July 7, 2017, strongly refuted reports that education will become expensive under GST. It stated that such reports are completely unsubstantiated.  In fact, there is no change made in any subject relating to education in the GST era, except to reduce tax rate on certain items of education such as school bags etc, it said.

Rubbishing the reports that education will become expensive under GST, the government said that services provided by an educational institution to students, faculty and staff are exempted from GST, according to a PIB release.

Transportation of students, faculty and staff services provided to an educational institution (providing pre-school education and education up to higher secondary school or equivalent) are exempted from GST. Similarly, catering, including any mid-day meals scheme sponsored by the central government, state government or Union territory, to an educational institution providing education upto higher secondary school or equivalent, are also exempted from GST. Security or cleaning or housekeeping services performed in such educational institutions are also exempted from GST. Services relating to admission or conducting of examination by such institutions upto higher secondary too are exempted from GST, according to the PIB release.