The Goods and Services Tax (GST), implemented in India on July 1, 2017, has had a significant impact on various sectors of the economy, including education. The Goods and Services Tax (GST) reforms introduced in September 2025 represent a landmark step in reshaping India’s taxation system to better serve the aspirations of its youth. Understanding the implications of GST on education is crucial for institutions, students, and parents. Education, nutrition, care, and play form the foundation of every child’s development. The recent GST rationalisation measures are a path-breaking step towards making learning, mobility, and childcare more affordable for families across India. GST reforms on Educational Services GST Exemption on Formal Education : School and university education continues to remain fully exempted from GST. Extension of benefits now covers essential learning materials and childcare products, making education and upbringing more affordable for Indian households and raising well the future youth of our country. GST Rationalisation on Learning Materials : GST on pencils, sharpeners, crayons, exercise books, graph books, maps, and charts has been reduced from 12% to Nil. GST on erasers has been reduced from 5% to Nil. This reduction will make basic learning tools cheaper, especially for government schools, children and youth in rural areas. It reduces out-of-pocket education expenses for families, encourages higher school enrolment, and supports better learning outcomes. At the same time, it boosts demand for domestic stationery manufacturing, particularly among MSMEs. GST Rationalisation for Toys and Sports Products : The toy industry, important for child development and MSME manufacturing, benefits from reduced GST. GST on toys and sports goods cut from 12% to 5%. This makes toys more affordable, encouraging early childhood learning through play. This will also “Vocal for Local” initiative by supporting domestic and youth MSME toy makers. GST Reduction on Bicycles : Affordable Mobility for Students. GST on bicycles reduced from 12% to 5%. This will make bicycles more affordable and will help children in rural and semi-urban areas access schools more easily. It further encourages mobility and reduces dropouts, particularly among girls. Additionally, it promotes fitness, outdoor activity, and healthier lifestyles among children. Source : PIB