The central government has dismissed conjectures that education will become expensive under the Goods and Services Tax (GST). It said that services provided by an educational institution to students, faculty and staff were exempt under GST.
The ministry said education up to higher secondary school level does not attract GST on output services and also on most of the important input services.
One of the fears about the Goods and Services Tax (GST), globally, is that consumer prices can stay higher for longer because tax increases are passed on faster than tax cuts.
The impact on inflation will depend on the extent to which businesses pass on the tax changes to consumers. The government may see a revenue loss of around Rs 1 lakh crore and some jump in inflation in the coming year due to goods and services tax (GST), Thomas Isaac, Kerala's finance minister said on Thursday.
With the implementation of goods and services tax (GST) from 1 July, the numerous sectors in the Indian market are to be affected. Real estate is one among them. GST has brought all indirect taxes (service tax, excise duty and value added tax which apply to the procurement of goods and services during construction) under one unified tax structure; leading to a scenario where there will only remain the direct taxes (capital gains tax and wealth tax), stamp duty and GST for all property-related transactions.
The Goods and Services Tax Council finalised different GST rates for hotels and restaurants based on their tariffs and turnover, drawing mixed reactions from the industry. A slight relief to the luxury hotel segment is that the GST on their restaurants has been revised. Initially, the council planned to impose a GST of 28% on the restaurants at luxury and five-star hotels, but after a lot of opposition from the Indian hospitality sector they brought it down to 18%.
As many as 22 states have abolished border commercial tax checkposts after the rollout of goods and services tax (GST) on July 1, marking a big step towards ‘One nation, one tax’ goal of this reform.
State border check posts scrutinise material and location-based tax compliance, resulting in delays in delivery of goods and cause environment pollution as trucks queue up for clearance.