Exempt GST On Coaching Fees: Kota Students Urge PM Modi

Kota: Students enrolled and those planning to enrol in various coaching institutes here have appealed to Prime Minister Narendra Modi to exempt GST on the coaching fees. With the roll out of GST from July 1, the students will have to pay 18 per cent service tax along with the fees. Currently they are paying 15 per cent as service tax. Through the social media campaign, the students as well as their parents have expressed disappointment over the government’s decision to raise the service tax under GST.

They have been writing on PMO’s twitter page to demand the GST exemption on coaching fees or keep the service tax to maximum 5 per cent.

Thousands of students are queued up to get admission in the coaching institutes at Kota but their parents are worried over the raise in tax slab.

Around 60 per cent of about 1.75 lakh students who seek admission annually for preparation to crack entrance exams for engineering and medical colleges hail from middle class and lower middle class, mostly from semi-urban or rural areas, said the director of a coaching institute here.

GST tax of 18 per cent would raise the financial burden over the students and their parents as one would have to pay Rs. 1.18 lakh instead of 1 lakh annually for a coaching session, said Hrishika, a medical aspirant in Kota.

She said that adding 18 per cent tax raise would also cause a hike in prices of residential accommodation, mess and transportation.

Mr. Naveen Maheshwari, director of a reputed coaching institute here said that 18 per cent GST tax will put a financial burden on the students and their parents.It will affect thousands of medical and engineering aspirants.

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The Kota students are also posting on a facebook page to air their grievances regarding the move, besides writing post cards to the prime minister.