Education will not be expensive under GST: Finance Ministry
The Finance Ministry on Friday rubbished reports of education becoming expensive under the new Goods and Services Tax (GST) regime rolled out on July 1.
Finance Ministry denied reports that education would become expensive under GST calling such reports 'completely unsubstantiated'.
Finance Ministry made it clear that there is no change made on any subject relating to education in the GST era, except to reduce the tax rate on certain items.
'Rather tax rate has been reduced on certain items of education including school bags etc,', said the statement.
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 exempt from GST.
Similarly, catering, including any government-sponsored mid-day meals scheme, to an educational institution providing education up to higher secondary level are also exempt from GST.