Goods & Services Tax (GST) is an indirect tax throughout India to replace taxes levied by the central and state governments. The GST is governed by GST Council and its Chairman is Finance Minister of India. Under GST, goods and services will be taxed at the following rates, 0%, 5%, 12%, 18%, 28%. Though Pre-primary and higher secondary educational services to remain tax-free still it is expected that GST is making higher education costlier in private institutions. Higher education institutions will have to pay GST when availing of a wide range of services. Education services provided by the government will, however, remain tax-free.
You might be thinking HOW GST is causing all these..??
Education is considered a service, and most services are taxable. However, a ‘Negative List’ was introduced in 2012 under which certain services, including education, were kept out of the tax ambit.