JAIPUR: Students enrolled/enrolling in coaching institutes—IITs and Medical— have appealed to Prime Minister Narendra Modi to exempt GST on coaching institutes in Rajasthan.
Students contended that they are already paying 15% service tax along with the fees. They have expected that GST on coaching institutes will be around 18% and above.
Kota coaching students have launched a campaign #exemptcoachingfromGST on twitter ahead of a crucial meeting on GST which will decide the quantum of tax on coaching institutes.
State recognizes coaching institutes under service industry and has levied tax of 15%. The coaching institutes have been demanding to put them under the category of educational institutes which the state has refused. The coaching institutes were put into service industry in 2003. It started off with 5% tax and has shot up to 15%, since 2013. The average fees of coaching institute are Rs 1 lakh per year. That means every child which enrols for coaching pays Rs 15, 000 per year.
Other than twitter parents are writing mails to the prime minister. Puneet Kumar, a father based in Jaipur who shot a mail to the PM says that from the past two years his son has been enrolled with a coaching institute. “I have paid Rs 30, 000 in tax along with Rs 2 lakh fees. The relief of Rs 30, 000 could have been used for providing some more facilities to my son,” said Kumar.Most of the students in coaching institutes comes from rural areas and are from economically poor backgrounds. They contended that it becomes difficult to bear the cost of coaching and the additional burden of tax makes it furthermore difficult.Nitesh Sharma, marketing head of a premier coaching institute says, “It is ironical that state has put us under service industry even after state is funding coaching of 100 students. Any change in tax regime would invite hike in the coaching fees.”