The Coaching Federation of India (CFI) has made a pre-budget appeal to the Union Finance Minister, requesting rationalisation of the Goods and Services Tax (GST) on coaching and supplementary education services ahead of the Union Budget 2026. Representing thousands of coaching institutions across India, the federation stressed that the current tax regime has created an unnecessary financial burden on students, parents, and small coaching centres.
In its letter dated January 28, 2026, CFI acknowledged the government’s emphasis on education and skill development for the nation’s youth. However, it highlighted that the prevailing GST framework imposes taxes on formal coaching services, effectively increasing the cost of learning and creating hardships for middle-class families. The federation described this as a policy contradiction that discourages formal supplementary education, which is vital for skill building and academic growth.
The federation argued that coaching services are not a luxury, but a necessary component of modern education in India. With competitive examinations, board exams, and skill-based courses driving demand, small and medium-sized coaching institutions are facing significant operational challenges. The GST burden adds to these pressures, making it difficult for many institutes to maintain affordable fees while sustaining quality teaching standards.
CFI’s representation to the Finance Minister also highlighted the broader social impact of taxing coaching services. The federation stressed that high education costs could limit access to quality learning for students from middle-income families, potentially widening the educational divide. Rationalising GST, the federation argued, would not only ease the financial strain on parents but also encourage the growth of coaching institutions, thereby supporting the government’s broader agenda of education and skill development.
The appeal comes at a crucial time, ahead of Budget 2026, when policymakers are expected to focus on measures that promote equitable access to education and skill enhancement. By seeking a reduction or exemption in GST on coaching services, CFI hopes the government will recognise the importance of formal supplementary education as a public good rather than a luxury service.
Furthermore, the federation highlighted that the move could boost compliance, formalisation, and transparency in the coaching sector. Many smaller institutes currently operate in a semi-formal capacity to avoid tax burdens, and rationalisation of GST could bring them into the formal economy, benefiting both the sector and government revenue in the long run.
In conclusion, CFI’s pre-budget submission stresses that education and skill development should be incentivised, not taxed, and calls on the government to align GST policy with its national educational objectives. With tens of thousands of coaching institutions across India, such reforms could significantly reduce the financial burden on middle-class families and promote inclusive, high-quality education.
