Coaching Federation Pushes for GST Relief in Education Sector

The Coaching Federation of India has requested Finance Minister Nirmala Sitharaman to lower the GST on coaching services. They argue that the current structure raises costs for parents and small businesses, urging a reduction or exemption to alleviate financial strain and promote voluntary compliance.

The Coaching Federation of India has urged Finance Minister Nirmala Sitharaman to adjust the Goods and Services Tax (GST) applied to coaching and supplementary education services in the upcoming Union Budget. The Federation believes the existing tax regime unfairly burdens parents and small education businesses, inhibiting growth and access.

In a recent submission, the New Delhi-based body requested a reduction in GST to 5% or a full exemption, arguing that coaching institutions have limited opportunities for tax offsets, unlike other business sectors. This, they state, unjustly adds tax directly to student fees.

CFI Vice President, Keshav Agrawal, highlighted the necessity of such reforms, noting the growing importance of coaching for exams like JEE and NEET. The Federation also called for raising the GST exemption threshold to Rs 1 crore, aligning education costs with the National Education Policy-2020.

(With inputs from agencies.)