GST on services such as hostel fee to be exempted

GST on services such as hostel fee to be exempted

The Indian Government gave worried parents and students a big reason to celebrate when they made it clear that the newly introduced GST will not be applicable on the services provided by the educational institutions. Earlier, there were reports that an additional 18 % of GST will be levied on the annual hostel fee charged by the college hostels.The government released a press statement which said that the services provided by the educational institutes to the students, faculty and staff members are exempted from GST. The statement read, "There is no change in tax liability relating to education and related services in the GST era, except a reduction in tax rate on certain items of education." GST is the biggest tax reform, which has been introduced in India post-independence. It was implemented on July 1 at midnight at the Parliament's historic Central Hall in the presence of President Pranab Mukherjee and Prime Minister Narendra Modi.The main reason to introduce GST in the nation was to remove the hierarchy of taxes and to make the process of taxation unified and simpler for the whole nation.As of now, GST has replaced 20 different taxes and has brought the $2 trillion economy and i.3 billion people under the common umbrella.As of now lodging and boarding facilities provided by the educational institutes, which provide education from pre-school level to higher level as recognized by the law, are completely exempted from GST.

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