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- Students who are willing to enrol for coaching classes will have to pay 18% service tax.
- Earlier the service tax was 15% in addition to the fees of classes.
- Parents and students are asking the government to exempt coaching from GST.
Various students enrolled in coaching class and those who aspire to join coaching centres in Kota have appealed to Prime Minister Narendra Modi to exempt coaching classes from the GST slab.
According to the Goods and Service Tax (GST) slabs that will be implemented from July 1 students will have to pay 18% service tax apart from the fees of coaching classes. Currently, the service tax paid by students is 15% in addition to the fees for coaching classes.
Disappointed with the increase in service tax from 15% to 18%, students and their parents will have to social media and have started a campaign against the Government's decision to raise the service tax under GST.
Students have also been writing on PMO's Twitter page asking the government to exempt coaching classes from GST or to bring down the tax to 5%. Thousands of students are seeking enrolment in the top coaching institutes at Kota but their parents are concerned about the raise in tax slab.
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Of the 1.75 lakh students who seek admission in various coaching centres, close to 60% come from middle-class and lower middle-class families. Many of these students also come from semi-urban and rural areas with dreams to crack engineering and medical entrance exams.
A medical aspirant, Hrishika, said that GST tax of 18% will increase the financial pressure on students and their parents as they will be required to pay Rs. 1.18 lakh per annum instead of 1 lakh for entrance exam coaching classes.
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She further added that 18% tax will also lead to hike in prices of residential accommodation, transportation and mess facilities.
