Students who are enrolled in various coaching centers and those who are planning to get enrolled have appealed Prime Minister Narendra Modi to exempt GST on the coaching fee. With GST getting applicable from July 1, the students will be forced to pay 18 percent service tax along with the fees of the coaching classes. Currently they are paying 15 Percent Service tax.
Parent and students expressed their disappointment over the government's decision to raise the service tax, through social media campaign.
They have been writing on PMO's twitter page and are demanding the exemption of the GST on the coaching fees or to keep it to the maximum 5 percent.
As students are gearing up to get admissions into various coaching centers at Kota their parents are worried about the increased service tax.
"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.
The 18 percent service tax would also cause a hike in the 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".