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Published on:
February 25, 2023
By
Prudhvi Raj

GST will not apply on education, healthcare, and pilgrimages

The Goods and Services Tax (GST), which came into effect on July 1, 2017, is an indirect tax applicable on the supply of goods and services in India. It replaced all other indirect taxes levied by the Central and State Governments. There have been concerns among people about the applicability of GST on education, healthcare, and pilgrimage services provided by the government or NGOs. In this article, we will discuss whether GST is applicable on these services or not.Summary:The article talks about the applicability of GST on education, healthcare, and pilgrimages. It clarifies that GST does not apply to these services provided by the government or NGOs. The article also discusses the impact of GST on these sectors.

Taxation Title:

GST will not apply on education, healthcare, and pilgrimagesSlug: gst-will-not-apply-on-education-healthcare-and-pilgrimages.

GST and Education:

Education is a fundamental right, and the government provides it free of cost to children up to the age of 14 years. Private schools and colleges charge a fee for education, and there have been concerns about the applicability of GST on the fee charged by them. However, the government has clarified that GST does not apply to education services provided by the government or government-aided educational institutions.Private schools and colleges are required to pay GST on the fee charged by them, but they can avail themselves of input tax credit. This ensures that they do not pass on the burden of GST to students and parents.

GST and Healthcare:

Healthcare is another essential service, and the government provides it free of cost to people through government hospitals and clinics. Private hospitals and clinics charge a fee for healthcare services, and there have been concerns about the applicability of GST on this fee.However, the government has clarified that GST does not apply to healthcare services provided by the government or government-aided hospitals and clinics. Private hospitals and clinics are required to pay GST on the fee charged by them, but they can avail themselves of input tax credit. This ensures that they do not pass on the burden of GST to patients.

GST and Pilgrimage:

Pilgrimage is an important aspect of India's culture and tradition, and the government provides many facilities to pilgrims. There have been concerns about the applicability of GST on these facilities, such as accommodation, transportation, and food.However, the government has clarified that GST does not apply to pilgrimage services provided by the government or government-aided institutions. Private tour operators and travel agents are required to pay GST on the fee charged by them, but they can avail themselves of input tax credit. This ensures that they do not pass on the burden of GST to pilgrims.

Impact of GST:

GST has had a significant impact on the Indian economy, and it has simplified the tax structure. However, there have been concerns about its impact on certain sectors, such as education, healthcare, and pilgrimage.The government has tried to address these concerns by exempting these services from GST or providing input tax credit. This ensures that the burden of GST is not passed on to the common people.

Conclusion:

GST is a significant tax reform in India, and it has simplified the tax structure. However, there have been concerns about its impact on certain sectors. The government has clarified that GST does not apply to education, healthcare, and pilgrimage services provided by the government or government-aided institutions. Private operators in these sectors are required to pay GST on the fee charged by them, but they can avail themselves of input tax credit. This ensures that the burden of GST is not passed on to the common people.

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Updated on:
March 16, 2024