GST Council urged to lower tax rate for “employment services” to 5%

Ahead of the Union Budget, the Ministry of Skills Development and Entrepreneurship has proposed amendments in direct and indirect tax rules and Companies Act 2013 to create a larger pool of employable workforce and harness the demographic dividend.

On the direct tax front, the ministry has called for the inclusion of skilling programmes in the Section 10 (23C) of the Income Tax Act.

Currently, skilling programmes are not explicitly included in the definition of education; hence, they are not exempt from income tax. Not-for-profit universities and educational set-ups are, however, exempt.