Budget 2019 India: There are high expectations from the government that a substantial amount would be set aside for the education sector in Budget 2019-20.
Union Budget 2019 India: Education Technology in India is transforming swiftly. With Budget 2019 around the corner, we expect exemption from the GST registration for Ed-tech space up to a certain limit of turnover. Ed-Tech is the leading segment in Education market where India is forecast to be worth about $18 billion by 2022, growing at a CAGR of around 20% over the five-year period. This means there’s huge scope for development in the area.
In a country that has over 200 million students, online education is all set to play a pivotal in improving the learning outcomes to a great extent. Naturally then, for such an important sector, the government has to be a little more pro-active when it comes to supporting industries like ed-tech that can create impact at such a massive scale.
As being a part of the Ed-tech platform, which is registered under the Startup India initiative of the government there is one area that has been a slight pain point. The GST rate for all educational services outside of schools and colleges is 18% — the same rate as items such as perfumes or even chocolates or other luxury items. Education and up-skilling are not a luxury and it should not be taxed in the same manner as luxury items. This further creates disparities allowing children from wealthier backgrounds to have access to better teachers.
Our underlying objective of business is to promote education and also to create an opportunity of income and ease for tutors, thereby creating an opportunity of self-employment. The definition of “promoting education” should not be limited to education in schools and colleges. It’s essential to broaden the scope to include coaching and the likes because these services also help in building skilled personnel for the country. Speaking in reference to the ed-tech industry, a reduction in GST would greatly help augment a culture of up-skilling among Indians which is the need of the hour for the country to maintain an edge in technical skills.
We also have high expectations from the government that a substantial amount would be set aside for the education sector because, currently, a stronger foundation for new-age learning strategies is almost imperative for our country. We need more opportunities from the government for tender-based teacher training sessions in government schools and colleges, for students, parents as well as teachers.
For any country, children are the future who would lead it to a better tomorrow. The most seminal returns are those that would be gained from investments made in them. To make our children future-ready, we need to focus on our ed-tech sector. We expect that the new Budget 2019 should give certain tax breaks to ed-tech startups to enable them to reach newer levels.
Source: Financial Express