By Ishita Ganguly

Copyright startuppedia

Finance Minister Nirmala Sitharaman, on a discussion forum conducted by India Today, said that as coaching and other similar commercial training centres are not treated as educational institutions, the 18% tax rate applies to them. Nirmala Sitharaman speaks about recent GST slabs Advertisment Addressing concerns over the implementation of the recent GST tax slab, it was announced that a robust monitoring framework is being built to ensure the benefits reach the end consumers. Sitharaman said that the Members of Parliament will actively monitor the passing of rate cuts in their respective constituencies. Expressing confidence, she further added that the consumption boost from these cuts will particularly benefit the economically backwards states like Bihar. With the same amount of money, consumers will now be able to purchase more goods, leading to increased economic activity. The Minister claimed the reforms are aimed at benefiting the common citizens, the middle class, MSMEs, and farmers. The discussion was focused on significant reforms to the Goods and Services Tax (GST). Nirmala Sitharaman explained the methodology behind the original GST rate structure, stating that rates for items were determined by aligning them with the closest equivalent tax rates in the pre-GST era. When asked about the criticism from political opponents that the reforms are “8 years too late,” she pointed out their inability to implement the tax regime earlier. “Tell me why you couldn’t implement it? Leave 70 years, 10 years,” Sitharaman stated. The timing of the rate cuts, affecting over 300 items, was clarified as not being linked to current inflation figures but is the result of a continuous, one-and-a-half-year process. The government’s next major challenge is to see to it that industries and traders pass on the benefits of these rate reductions to the end consumers. Netizens respond “If coaching institutions are not educational, what are they?” asked a user. Another user commented: “Coaching institutes are giant business mafias, they brainwash students for a never ending love for government examinations. This results in loss of time and energy of students which inturn mints more money for these mafias.” “I agree but why 18% gst,” said another individual. “Reduce it. But coaching institutes do education stuff only just like the school. You don’t have to remove gst on them but reduce so that those who wants to go for coaching can afford.” Also read: “India and US are close friends and natural partners”: PM Modi, Trump to “unlock limitless potential” of trade ties (startuppedia.in)