New Delhi: With the Union Budget 2026 scheduled for 1st February, the education sector is awaiting key announcements. Ahead of the budget, the Coaching Federation of India (CFI) has written to Finance Minister Nirmala Sitharaman, urging a reduction in the Goods and Services Tax (GST) on coaching services. If accepted, this move could bring significant relief to millions of students and their parents.
GST on Coaching Fees
Currently, coaching centers and online tuition services are taxed at 18% GST, which is added to students’ fees. CFI claims that this increases the financial burden on parents, as coaching institutes have limited ability to offset the tax via input tax credits. The federation has requested the government to either reduce the GST to 5% or provide full exemption for coaching services.
Potential Relief for Competitive Exam Students
If the GST rate is reduced, students preparing for JEE, NEET, SSC, UPSC, CA, CLAT, CUET, and other competitive exams could benefit significantly. “Coaching has become a necessity for many middle-class families due to the competitive nature of exams,” said Keshav Agrawal, Vice President of CFI. “Reducing or rationalizing GST on coaching services could lower household expenses and make education more accessible.”
Demand Ahead of Budget 2026
The representation submitted by CFI on 28th January emphasizes that lowering the GST could ease the financial load for families enrolling children in coaching programs, enabling better access to supplementary education and improving opportunities for students across the country.
The upcoming budget announcement will reveal whether the government takes steps to ease GST on coaching, potentially benefiting millions of Indian students and parents preparing for key competitive exams.
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