Study of the impact of goods and services tax on educational institutions

Abstract

The present study is conducted to know the effects of Goods and Services Tax on educational institutions in India. Goods and Services Tax has had a revolutionary effect on all sectors of the economy, affecting their overall financial performance. One of those sectors is education. At the time of independence, education in our country was only in the public sector, but gradually the governments started handing it over to private hands. After this process of privatization, there was a fundamental increase in the structure of private educational institutions in the country. The Central Government, by making the 101st constitutional amendment, incorporated various indirect taxes prevalent in the country and implemented a new indirect tax 'Goods and Services Tax' on 01 July 2017. The purpose of this tax was to strengthen the concept of "one nation, one tax, one market". After the implementation of Goods and Services Tax, both positive and negative effects of this taxation system were seen on all goods and services produced in the country. These effects have not left the institutions providing services like education untouched, but the GST has tried to keep educational institutions free from GST. In this study, we will study the effects of GST on educational institutions using secondary data.