On this Independence Day from the ramparts of Red Fort, Prime Minister Narendra Modi announced the Next Generation of GST reforms by Diwali. The Prime Minister’s vision of creating a more efficient and citizen-friendly economy was realised as the GST Council on the 3rd of this month approved rates rationalisation with a focus on the common man.
The Council has simplified the indirect tax system into a two-tier structure of 5 per cent and 18 per cent from a four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent. An additional slab of 40 per cent has been introduced for select items, including tobacco and luxury items. These reforms have reduced tax rates in many sectors, easing the lives of citizens. Today, we look at the reforms undertaken for the education sector.
The GST Council approved the exemption of several educational and stationery products from GST. Items like exercise books, pencils, sharpeners, graph books, maps, globes and laboratory notebooks, which previously attracted a 12 per cent GST rate, are now tax-free. Other stationery items such as mathematical, geometry and colour boxes have also been cut down from 12 per cent to five per cent.
Union Education Minister Dharmendra Pradhan said that GST has been removed from many items, while on several others, it has been reduced to 5 per cent. He said, This will ease the financial burden on citizens, especially in the education sector. The decision of the GST council will directly ease the financial burden on parents and also have a broad impact on educational institutions, students, and providers of educational materials and services across the country. Our correspondent reports that the GST reforms have been carried out with a focus on the common man and will come into effect from the 22nd of this month.