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GST on Job Application Forms Increases Burden on Unemployed

Goods And Services Tax (GST) was implemented from July 2017 and 18% GST is liable to pay for banking services. Subordinate Services Selection Commission has announced direct recruitment for the vacant posts and applicants have to fill the online applications regarding the same.

For group ‘G’ category vacancies, applicants have to pay the fees online as there is no arrangement for offline application and banks are charging GST on the transaction to pay fees online. For general category, Rs. 300 is determined by the commission but with the inclusion of Rs. 18.88 in form of GST for depositing fees online, the total amount payable becomes Rs. 318.88. Pre-GST implementation, there was no such kind of tax applicable on application fees.

As under GST, banking services are charged at the rate of 18%, banks are charging Rs. 18.88 for online fee payment over the application fees. If the applicants use the services of the banks in which the fees are to be paid, then only Rs. 300 will be charged in form of application fee. While paying from the other banks will attract GST on a transaction.

In India, generally for direct vacancies applicants have to bear approximately Rs. 500 for an application form. Application fees and other expenses inclusively touch Rs. 300. There is around 8.5 lakh crore unemployed have been registered under Department of Employment Services and they apply for direct recruitment vacancies to get government jobs.

Read Also: Goods and Services Tax Effects on Indian Jobs

The selection commission has recently announced direct recruitment for 50 vacant posts across the various department and the last date for application is 10 May 2018. Approximately 11400 applicants have applied for the post and paid the fees till the date. Further, total 33,000 applicants have registered for filing the application form.

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