Congress highlights GST collection from coaching institutes, asks govt for policy solution

The Congress on Saturday highlighted that India urgently needs a comprehensive policy solution to the mushrooming of coaching institutes and called for a revision of syllabi, more resources for all exam-takers and investments in the quality of education.

Congress general secretary in-charge communications Jairam Ramesh said data provided by the Department of Higher Education to the Rajya Sabha shows that GST collections from coaching institutes have risen rapidly between 2019 and 2024, from Rs 2,241 crore to Rs 5,517 crore. 

He said there is an astonishing 146-per cent rise in Goods and Services Tax (GST) collections, some part of which may be attributable to better enforcement, but it also likely comes from the growing market size, he said. 

"Worryingly, the GST collections of Rs 5,517 crore in FY24, collected at a rate of 18 per cent, suggests a market of Rs 30,653 crore for coaching institutes annually.  This is an extremely worrying figure, since it corresponds to about two-thirds of the Union Budget\'s allocation for higher education in FY24," Ramesh said in a post on X.

Earlier this week, Minister of State for Education Sukanta Majumdar told the Rajya Sabha that GST collection from coaching centres surged significantly over the past five years, as per the data provided by the Ministry of Finance. 

The GST revenue from coaching establishments was recorded at Rs 2,240.73 crore in 2019-20, which more than doubled to reach Rs 5,517.45 crore in 2023-24, as documented by the Revenue Department under the Ministry of Finance. 

In 2020-21, there was a slight decrease from the previous year, with the collection amounting to Rs 2,215.24 crore. Subsequently, the collection figures climbed to Rs 3,045.12 crore in 2021-22 and further rose to Rs 4,667.03 crore in 2022-23.

MoS Education Majumdar addressed inquiries regarding the scale and rapid expansion of the coaching industry, including discussions on the estimated value of the coaching sector and its anticipated growth in the coming years.

Congress MP Jebi Mather Hisham had questioned the Centre on coaching centres and issues related to them days after the death of three UPSC aspirants due to flooding of the basement of a coaching centre in Delhi last weekend. 

Replying to another question in the Rajya Sabha on whether the government has taken cognizance of increasing student suicide cases, fire incidents and deficiencies in facilities and teaching methodologies in private coaching centres in the country, and if specific instructions have been issued on their functioning, Majumdar pointed to the guidelines issued in January this year.

In response to this tragic event, the Delhi government took decisive action by sealing approximately 30 basements belonging to similar coaching centers. These establishments were reported to have been in violation of the regulations set in place.GST figures are likely underestimating the market for coaching institutes, which is notorious for its poor regulation, the Congress leader added. 

"India needs a comprehensive policy solution to this mushrooming of coaching institutes -- syllabi need to be revised, and brought in line with school curriculum, more resources need to be made available for all exam-takers, and investments must be made in the quality of education," he said. 

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