*Coaching federation Of India letter to FM regarding GST ease to Coaching Centers in the upcoming budget.* Ease the GST on Coaching Services, urges Coaching Federation of India in a letter to the FM on the eve of the Union Budget. Currently, the GST burden on coaching services directly increases education cost for parents, penalising affordability in supplementary learning — especially for the middle class and aspirational families. Coaching Federation of India (CFI) proposes reducing GST on coaching services to 5 per cent or NIL and raising the GST exemption threshold from ₹20 lakh to ₹1 crore for small institutes to protect MSMEs and improve compliance. Says CFI President Saurabh Saxena : “GST relief is not a concession to coaching centres — it is relief to parents and students.” As the Government prepares to present the Union Budget 2026, the Coaching Federation of India (CFI) has strongly advocated using this opportunity to reform certain elements of India’s GST framework related to coaching and supplementary education services. In a letter to Union Finance Minister Smt. Nirmala Sitharaman, CFI has urged the Government to reduce GST on coaching services and to increase the GST exemption threshold for coaching institutes from ₹20 lakh to ₹1 crore, in order to protect small and mid-sized institutes, reduce compliance burden, and reduce the education cost for parents. The GST burden is borne directly by parents The Federation’s representation notes that coaching is no longer an optional luxury. For millions of students preparing for Class X/XII board exams and competitive examinations such as JEE, NEET, CUET, CA/CS, CLAT, SSC, Banking and UPSC, coaching has become a practical support mechanism. However, taxing coaching services at prevailing GST rates increases the final fee paid by parents and families. A policy contradiction: Education is promoted, but supplementary education is taxed CFI’s letter highlights a contradiction where one part of the ecosystem is encouraged via policy — education, skilling, employability — while supplementary learning is taxed, making learning costly. Says Vice President Media, Keshav Agarwal Coaching Federation of India: “This is not merely a taxation issue. GST on coaching ultimately becomes a tax on aspiration. Any GST relief on coaching services is actually a relief to parents and students.” CFI requests reduction of GST on coaching services The letter notes that coaching institutions have limited input tax credit capability, because their major expenses are salaries and academic delivery costs. This makes GST a direct cost addition to parents, not a neutral tax passed through a value-add chain. CFI has recommended: GST NIL / 5% on coaching services, particularly student academic support services. Raise exemption limit from ₹20 lakh to ₹1 crore The Federation further urges that the current ₹20 lakh threshold has remained unchanged for over 20 years in practical effect, while inflation and operational costs have increased several times. As a result: small institutes become taxable too early, compliance costs rise sharply, students face higher fees. A level playing field is disturbed in favour of large corporate coaching chains The Federation argues that increasing the threshold to ₹1 crore will: protect MSMEs, support affordable learning, improve formalisation, reduce tax avoidance pressures and strengthen GST compliance in long run “Current structure pushes institutions into informality and a balanced GST policy can ensure affordability, equity and compliance together — while strengthening India’s human capital.” Vice president PR Ashish Gambhir CFI’s representation states that the current policy unintentionally encourages many small coaching centres to remain informal or unregistered because GST increases fees and reduces competitiveness. Suggested policy options The Federation has suggested three workable options: GST NILor Maximum 5% on academic coaching and competitive exam preparation Targeted relief for student-level education, while keeping higher GST for premium/optional ed-tech luxury services (if required) CFI requests stakeholder consultation CFI has also requested the Finance Ministry / GST Council to convene a consultation with coaching MSMEs and student-focused education service providers. Says CFI: “GST on coaching is not a tax on institutes — it is a tax on parents’ aspirations.” President Saurabh Saxena CFI “The ₹20 lakh GST exemption limit is outdated. Inflation has changed everything. It must be raised to ₹1 crore for education MSMEs.” Vice President Media Keshav Agarwal