GST (Goods and Services Tax) i.e. Goods and Services Tax, was implemented in India in 2017. Its purpose was to consolidate different taxes in the country and simplify the tax system. After the implementation of GST, its rates have been changed from time to time. These changes affect the general public directly, and it also includes the student community. Students, whether from school, college or university, often manage their lives in limited budgets. Therefore, the decrease in GST affects their lives on many levels. In this article we will know in detail what and how the GST rate reduction has an impact on the life of a student.
1. Direct effect on educational materials
The most important things for students are – books, notebooks, stationery and other educational equipment. All these things come under the purview of GST. If there is a decrease in GST on these, then students get this material at a cheap price. For example, if the GST on a textbook decreases from 12% to 5%, the price of each book saves a few rupees. While this amount may seem less in alone, the total savings of the student increases significantly throughout the semester or year. Stationery such as pen, pencil, ruler, journal and notebook are also everyday requirements. Due to decrease in GST, the expenditure on these is reduced. This provides direct benefit to the students because they get the goods required for their studies at a lower price.
2. Electronic equipment and impact on digital education
Nowadays the importance of technology in education has increased. Students use things like laptops, tablets, printers, keyboards, headphones and internet for their studies and projects. If the GST is low on these devices, prices decrease. For example, if the GST on a laptop decreases from 18% to 12%, the student has to pay at a cheaper rate on that laptop. Also, on online education and e-learning platforms, the decrease in the rate of GST, digital courses, online tests and educational apps become cheap for students. This is especially beneficial for students who live out of the house and are more dependent on online studies.
3. Effect on food and daily requirements
Students who live in hostels or manage their own expenses are important for daily food, snacks, beverages and other use items. The price of these items decreases due to decrease in GST. For example, students can save some in their daily expenses due to decrease in GST on milk, curd, biscuits, juices or snacks. This savings gives direct benefits at a small level, but over time it has a great impact on the monthly budget. Students can use this savings in other requirements such as books, online courses or additional education materials.
4. Impact on entertainment and cultural activities
Students’ lives are not limited to studies only. Entertainment, sports and cultural activities are also important for them. GST also applies to films, concerts, online streaming platforms, video games and sports materials. Due to decrease in GST, the cost of these activities is reduced. For example, if the subscription of an online streaming platform comes at 5% GST instead of 18% GST, students can take it cheaply. The result of this is that students can better manage the budget for their entertainment and cultural development and avoid additional expenses.
5. Improvement in general budget and financial freedom
Students are often on limited budget. They have to take care of their fees, educational materials, daily expenses and entertainment. The decrease in GST reduces their monthly and annual expenses. Savings in small expenses give students financial freedom. For example, students who are working part-time or bear their own expenses can now use their savings for a long time. Students can use their rescued money in textbooks, online courses, sports activities or other developmental functions. Thus, the decrease in GST enables students financially.
6. Mental and social influence
Financial pressure in student life is a common problem. It is difficult to balance limited resources for fees, books, hostel expenses and daily requirements. The impact of GST reduction also gives relief to students mentally. The student now has less concern that their needs are getting expensive. Low prices and increased savings give students freedom to focus more on their studies and personal development. It is also important from social point of view. Students can now avail equal level education and entertainment at low cost. It also helps in their self-esteem and social balance.
7. Practical benefits through example
Suppose a student’s monthly expenses are as follows:
Goods/Service Monthly Expenditure (Rupees) Savings (Rupees) New Price (Rupees)
Textbook and Stationery 1500 45 1455
Laptop/Electronics 5000 250 4750
Food and daily use 3000 90 2910
Entertainment (Striming, Game) 800 50 750
