Image Source : PTI/FILE PHOTO All eyes are on Finance Minister Nirmala Sitharaman who will present the Union Budget 2023 in Parliament on February 1.
Budget 2023: The Indian education technology market has been expanding in recent years. The education sector, which is one of the top contributors to the economy and continues to account for a significant portion of every year, has ambitious goals from the upcoming Budget. .
The GST Act has attempted to strike a delicate balance between exempting core educational services like books and taxing commercial education services like online courses and skill-based offline solutions at a standard rate.
BUDGET 2023: FULL COVERAGE
The edtech industry is anticipating tax breaks for e-learning products and services. Products and services for e-learning are currently taxed at the same rate as traditional classroom-based education. Leaders in the field contend that edtech businesses suffer as a result of this tax structure, making it difficult for them to compete with more conventional educational establishments. The government can help the edtech industry grow and make online education more accessible to students by exempting e-learning products and services from taxation.
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The Indian Edtech Consortium (IEC), a self-governing industry body, suggested that the government should consider taxing educational products and services at a rate of 5 to 12 percent. Mayank Kumar, chairman of the IEC, stated, “We also strongly recommend income tax benefits per annum for parents of up to Rs 15,000 for those spending on educational products and services.” It would be appropriate for the government to introduce an additional tax provision to accelerate the acceptance of upskilling and online education, similar to how Section 80C reduces tax obligations.
FAQs
Q1. Who is the Education Minister of India?
Dharmendra Pradhan is the current Education Minister of India.
Q2. Why are coaching centers subject to GST?
Coaching centers, tuition, and private tutoring are not included in the approved vocational education courses or are not legally recognized by the government. As a result, they are subject to 18% GST tax.
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