The Goods and Services Tax will affect at least 3 per cent on the existing fees Majority of the colleges and paying accommodation centres are contacting experts to calculate the returns But this could see many opting for rented accommodation than paying heavy for colleges and PG centres
Here's some not-so-good news for students and working professionals who stay away from their homes in hostels and paying guest accommodations. For, their stay in hostels or PGs will going to be a costly affair, thanks to the Goods and Services Tax (GST).
This year, the tax on college hostels (apart from college admission fees) has been hiked to 18 per cent with an increase of 3 per cent with the GST. The GST is not just imposed on accommodation, but also on food, laundry, internet, transport and other services offered in hostels/ PGs, reports Kannada Prabha. And those who run these centres are busy calculating the tax amount that will eventually be burdened on the students. Even the paying guest accommodations have turned out be costly in certain parts of the city, reports Kananda Prabha.
Lakhs of students and professionals who come to the city from outside, heavily depend on hostels and PG accommodations. But with the GST implementation, they are now worried about their stay. Majority of the colleges who have not implemented the Goods and Services Tax (GST) are calculating the plus and minuses of the tax with the experts.
The average annual fee of majority of the colleges in the city is up to Rs 2 lakh (including hostel fees for one student). With 3 per cent hike, the average annual fee may see a rise of Rs 18,500 on its existing fees and this certainly a burden on the students who have to bear this apart from their tuition fee, hostel fee and such. This would leave many students opting out of the college hostels, reports Kannada Prabha.
"It is better to take a room on rent and share it with my friends than coughing up so much for hostel. At least, if I stay in the hostel, I can cook all by myself and save some money. This could take care of my travel expenses too," said Gowtham, who stays in a private college hostel, reports Kannada Prabha. "I pay at least Rs 8,000 monthly to my PG and annually, I spend close to a lakh. If this is going to be hiked further with the GST, it is better to have a room on rent," echoed Sharan, who stays in a PG accommodation at Nagarbhavi, reports Kannada Prabha.
