Coaching Federation Seeks 5% or Nil GST, ₹1 Crore Threshold in Pre-Budget Plea

Overview

• CFI submitted a representation to Finance Minister Nirmala Sitharaman dated 28 January ahead of the 1 February Union Budget and awaits a response.
• The request asks that GST on coaching and supplementary education be reduced to 5% or fully exempted, arguing coaching is an essential academic support.
• The federation seeks an increase in the GST exemption threshold for coaching services from ₹20 lakh to ₹1 crore to protect MSMEs and small centres.
• CFI says limited input tax credit makes GST a direct fee add-on for parents, with rising costs hitting middle-class families and pushing small providers toward informality.
• The submission also urges simplified compliance, lower penalties, a uniform national enforcement approach, and a stakeholder consultation with the finance ministry before the Budget.