1. The Rising Cost of Education Under GST
In India, the middle class has always regarded education as the gateway to a better future. However, under GST, education services such as tuition fees and coaching classes have been taxed at 18%, making it much more expensive for families already burdened by daily expenses. The burden of GST on private education is hitting parents hard, especially those who rely on coaching centers and private schools to provide quality education for their children.
The middle class is already dealing with high costs of living—from housing to fuel—and the added tax on educational services is stretching budgets even further. The question arises: why should education—a basic pillar of society—be taxed and burdened with additional costs? Private education services that many families depend on for their children's future have now become significantly more expensive, and many families are feeling the heat.
While wealthier families can easily absorb the rise in education-related costs, it’s the middle class that bears the brunt. They struggle to provide a better education to their children, knowing that every extra rupee spent on tuition fees could have been saved for other essentials.
2. Healthcare Under GST: A Growing Burden for the Common Man
Healthcare is another critical sector that has been affected by the GST regime. While critical health services like emergency treatments and life-saving medications remain exempt, a wide range of other essential services, such as doctor consultations, diagnostic tests, and outpatient treatments, are taxed at rates ranging from 5% to 18%. For many middle-class families, especially those relying on private healthcare services, the added tax burden has made basic medical care less affordable. As medical expenses continue to rise, it’s not uncommon for families to delay or avoid necessary treatments due to the extra cost brought on by GST.
While wealthier individuals may have private health insurance or the ability to pay higher medical bills, the middle class is now facing the dilemma of choosing between proper healthcare and other basic necessities. The increased cost of healthcare, combined with GST on medical services, has created a situation where even common health problems can become unaffordable.
3. The Inflationary Impact of GST: Hurting the Common Man
One of the most alarming side effects of GST in India is its contribution to rising inflation. While the government has emphasized that GST would streamline taxation and lead to lower prices for many goods and services, the reality has been quite different. The middle class is witnessing higher prices for basic goods and services, ranging from food items to daily necessities, which have been taxed under various GST slabs.
The impact of GST on inflation is especially visible in essential sectors like food, fuel, and transportation, all of which have seen price hikes since the implementation of GST. As GST continues to increase the cost of living, the real purchasing power of the middle class has decreased, further straining household budgets. For instance, essential goods like grocery items and household products now come with additional GST charges, raising costs and making it harder for families to make ends meet.
The middle class, which is largely dependent on fixed incomes, is being disproportionately affected by these rising costs. While wealthier individuals and corporations may absorb these additional costs without much impact on their standard of living, the common man is struggling to cope with higher living expenses.
4. The Government’s Response: Where Is the Relief for the Middle Class?
Despite the government’s claims that GST is designed to benefit the economy and lower taxes for consumers, the reality is that it has added a layer of complexity and financial strain on the middle class. The rich and elite continue to live their lives largely unaffected, with minimal impact from GST hikes on their luxury goods, high-end services, or private healthcare.
The government’s promise of inclusive growth seems hollow when the middle class—which forms the backbone of the economy—finds itself increasingly marginalized. The lack of targeted relief for the middle class has left many frustrated. Whether it's education, healthcare, or the rising costs of essential goods, the average Indian family feels that the government has failed to provide a real safety net in the face of inflation.
Additionally, despite the intended benefits of simplifying the tax system, the complexity of GST compliance—along with the rise in costs for everyday goods and services—has made the system more burdensome for families already struggling with inflation.
5. What Needs to Change? A Call for Tax Reforms
The current situation demands a serious rethink of how the GST is being applied to sectors like education and healthcare. While GST reforms have simplified tax collection in some areas, middle-class families are bearing the brunt of these changes. The government must prioritize the affordability of essential services like education and healthcare, particularly for the middle class, by reconsidering GST rates on these services. It is essential for the government to focus on relief measures that directly address the needs of ordinary citizens, rather than focusing on luxury goods and high-end services that benefit only the wealthy elite. Reducing GST rates on essential services like education and healthcare, or even exempting them entirely, would help ensure that every citizen, regardless of their income, has access to the basics that make life better.
As we move forward, the government should also focus on combatting inflation more effectively. By controlling price hikes in essential sectors like food, fuel, and medical care, the government could provide much-needed relief to the middle class, allowing families to save more and live with dignity.
Conclusion: The Urgent Need for a Fairer Tax System
The implementation of GST in India has had a profound impact on the middle class, especially when it comes to critical sectors like education and healthcare. The government must take a closer look at the disproportionate effect that GST is having on ordinary citizens and consider reforming the tax system to prioritize affordability and accessibility. Without such reforms, India risks further deepening the divide between the elite and the common man, undermining the promise of inclusive growth.It’s time for a tax system that works for everyone—not just the rich and powerful.
