The Finance Minister’s recent statement has provided insights into the GST rates for stationery items, specifically those commonly used by students, and the tax treatment of online education services. This article seeks to examine the factors influencing the GST rates and explore the possibility of any revisions being contemplated.
GST Rates Applicable on Stationery Items
Stationery items commonly used by students, such as slate pencils, erasers, pencils, pencil sharpeners, mathematical boxes, and exercise books, are subject to concessional GST rates ranging from NIL to 12%. However, ballpoint pens fall into the 18% GST category.
Rational Behind Separate GST Rates on Stationery Items
The differential rates for stationery items are based on their categorization and usage. Essential items like slate pencils and erasers attract GST rates ranging from NIL to 5%, while a higher GST rate of 18% is applicable on non-essential items like ballpoint pens.
GST Applicable on Online Education
Online learning services offered by educational institutions, involving preschool to high school education, vocational courses, and recognized certifications, are not subject to GST. This exemption corresponds to the government’s goal of democratizing education in India.
Reasons Behind GST Exemption on Online Education
The exemption indicates the government’s view of the transformative impact of digital education and its vision to make education accessible to all. It seeks to facilitate online learning without imposing extra financial burden.
Government’s Position on GST Revision
In response to inquiries about reducing GST rates on stationery items and online education, the government has stated that there are currently no plans for such changes. Any adjustments to GST rates and exemptions will be based on recommendations from the GST Council, a constitutional body comprising representatives from the Central and State Governments.
Summary of GST Rates on Stationery Items with HSN Codes
The article also includes an annexure that outlines specific stationery items and their corresponding GST rates, ranging from NIL to 18%. This comprehensive overview helps us understand the tax implications of different stationery items.
| Product Name | HSN Code | GST Rate |
|---|---|---|
| Slate Pencils and Chalk Sticks | 9609 | Nil |
| Erasers | 4016 | 5% |
| Pencils (Including Propelling or Sliding Pencils), Crayons, Pastels, Drawing Charcoals and Tailor’s Chalk | 9608 or 9609 | 12 % |
| Pencil Sharpeners | 8214 | 12% |
| Mathematical Boxes, Geometry Boxes and Colour Boxes | 7310 or 7326 | 12% |
| Exercise book, Graph Book, Laboratory Notebook and notebook | 4820 | 12% |
| Uncoated Paper and Paperboard, Which Are Used for Various Graphing Purposes, Writing, Printing, Non-Perforated Punch Tape Paper and Punch Cards, Form of Rolls or Square or Rectangular Sheets, of Any Size (Excluding Paper That Falls Under the Heading), and Hand-Made Paper and Paperboard | 4801, 4802 or 4803 | 12% |
| Exercise Book, Graph Book, Laboratory Notebook and Notebook | 9608 or 9609 | 18% |
Conclusion: Gaining an understanding of GST rates for stationery items and online education is of the utmost importance for students, educational institutions, and businesses. The differential approach by the government determining stationery GST rates aims to strike a balance between revenue generation and affordability for students.
Read Also: GST Impact on Education Sector in India
Likewise, the GST exemption for online education aligns with the broader vision of inclusive and accessible learning. While there are no immediate plans for GST revisions, stakeholders in the education sector need to stay informed about these rates.
