CM Bhupesh Baghel opposes GST on hostellers, terming move as detrimental to economically weaker students

Raipur Chhattisgarh Chief Minister Bhupesh Baghel has raised concerns over the collection of Goods and Services Tax (GST) from students and hostellers, terming the move as detrimental to the education of economically disadvantaged children. In a letter to the Union Finance Minister, Nirmala Sitharaman, Baghel emphasized the potential negative consequences of imposing GST on hostel students, urging for a reconsideration of the decision. The ongoing dispute between state and central governments regarding GST has taken a new turn with Baghel’s intervention. The issue came to light following a recent order by the Authority for Advance Rulings (AAR), which mandated a 12% GST on hostel and paying guest (PG) accommodations. The Chhattisgarh Chief Minister contended that this decision could intensify the financial burden on the poor and middle-class families already grappling with inflation. Baghel stated that the imposition of GST on hostel students would likely force numerous economically disadvantaged students to discontinue their education and return to their hometowns. He appealed to the central government to reconsider this decision and exempt hostel students from the additional 12% GST burden before its implementation. The Chief Minister’s stance gained further prominence as he addressed the issue during a recent meeting with the youth in Bhilai. Baghel asserted that unless the decision to impose 12% GST on hostel students is overturned, the Chhattisgarh government is prepared to bear the financial burden. The crux of the matter lies in the distinction between residential properties and hostels/PGs. The Bangalore bench of the AAR maintained that these two categories are not equivalent, with commercial establishments such as hostels and PGs liable to pay the 12% GST. However, residential properties, including hostels, have traditionally been exempt from GST charges up to a certain fee amount. While this debate continues to unfold, Chief Minister Baghel’s vocal opposition underscores the potential repercussions of taxing economically vulnerable students. The conflict between state and central authorities over GST policies continues, with Baghel’s letter shedding light on the concerns of the most impacted demographic – the underprivileged students pursuing education away from home.