×

New GST Reforms: School Supplies and Fees Tax-Free

The government has introduced significant GST reforms that eliminate taxes on school supplies and fees, making education more affordable. This change will benefit families by reducing the cost of essential items like stationery and books. With the new tax structure, parents can expect lower prices for educational materials, easing the financial burden on households. The reforms aim to support students, especially those from economically disadvantaged backgrounds, ensuring they have access to necessary study materials. The new rates will be implemented from September 22, providing immediate relief for families as they prepare for the upcoming school year.
 

Overview of GST Reforms 2025



The recent GST reforms introduced by the government have made essential educational items such as stationery, books, and school fees exempt from tax, significantly lowering the cost of education.


Impact on School Fees

The new GST rates promise substantial relief for families regarding educational expenses. With the removal of taxes on items like children's notebooks, pencils, and other stationery, these products will now be more affordable.


Previously, these items were subjected to a tax rate of up to 12%, which inflated their prices. The elimination of this tax means that parents will find it easier to manage their children's educational costs, especially for frequently purchased items like pencils and erasers.


Items Affected by Tax Abolition

The following items will now be tax-free:


1. Pencils


2. Sharpeners


3. Crayons


4. Pastels


5. Erasers


6. Maps


7. Charts


8. Globes


9. Notebooks


10. Practice books


11. Drawing books


12. Magazines


13. Children's colors


14. Slates


15. Chalk


16. Blackboards


Previously, these items attracted GST rates of either 12% or 5%, which has now been reduced to zero.


Changes in School Fees

The new regulations also mean that government school and college fees, examination fees, coaching, and scholarship services will remain tax-exempt. However, professional courses and online coaching will still incur an 18% tax.


Benefits for the Common Man

The new GST rates will also lower prices for everyday items. For instance, a globe that previously cost Rs 500 with a 12% tax will now be priced around Rs 446 without tax. This change will directly benefit parents, especially those from lower-income backgrounds, making it easier for them to purchase necessary educational materials.


New Tax Rates Implemented

The government has streamlined the tax structure from four slabs (5%, 12%, 18%, and 28%) to just two: 5% and 18%. The previous 12% and 28% rates have been eliminated, simplifying the tax system and providing relief on everyday purchases, including school supplies.


Implementation Date

These new tax rates will take effect from September 22. Starting next month, consumers will be able to purchase stationery items without incurring any tax, making shopping for educational supplies more accessible.


Importance of Affordable Stationery

Removing taxes on educational materials will facilitate easier access to study supplies for all students. This change is particularly beneficial for underprivileged children, who will no longer struggle to afford essential items like books and notebooks, thereby supporting their educational journey and easing the financial burden on parents.