GST affects coaching classes with a fee hike

Parents end up paying extra ₹16,000 as GST to enrol their children for classes

GST affects coaching classes with a fee hike

In India, most of the parents believe in sending their children to coaching classes as that would give them an extra boost in academics. However, many believe that coaching classes, more than educating the students, extract money from the parents.  

To add to their misery, coaching classes owners have now hiked their fees because of the GST. For example, prior to GST, a parent used to pay 1 lakh as fees but post-GST, the same parent pays 16,000 as GST. In all, a parent ends up paying 1.6 lakh as fees.  

Parents should be alert

Any business which earns more than 20 lakh is eligible for GST which also includes coaching classes. Parents while paying the fees should check if the coaching classes are being charged GST and if they are doing it, then they should ask for a receipt of the same. Otherwise, parents should avoid paying extra charges, said Uday Nare, teacher, Hansraj Morarji School.

Classes suffering too

Mumbai Live spoke to a lot of coaching classes where they admitted that the GST has affected them as post-GST, parents have stopped sending their children for all subjects, and if they do, they send only for a subject or two. 

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