New Delhi: For India’s middle-class families, education has long meant balancing school with private coaching. But under the government’s GST 2.0 reforms, while school and college fees remain exempt from tax, private coaching centres and online tuition continue to attract 18% GST.
This policy has sparked debate as it raises costs for parents already stretched by competitive exams such as JEE and NEET. A ₹50,000 coaching course now effectively costs ₹59,000. The government says this distinction is deliberate: schools are formal education providers, while coaching institutes are not.
Why private coaching dominates
Private tutoring is hardly a new phenomenon. It grew steadily from the 1990s, when parents turned to local tutors to supplement classroom learning, and transformed into a mainstream industry by the 2000s.
Entrance exam competition, a fast-changing curriculum, and parental anxieties have made coaching almost compulsory in many households. Today, it is considered a “need” rather than an optional add-on.
According to Infinium Global Research, India’s coaching industry is currently valued at ₹58,000 crore and is projected to reach ₹1.34 lakh crore by 2028. Another report by IMARC Group estimates its size at USD 6.5 billion in 2024, with growth expected to touch USD 17.4 billion by 2033.
What the data shows
The government’s CMS Education survey (April–June 2025) highlights the scale of the phenomenon. Nearly 27% of Indian students are enrolled in coaching, with the share rising to 31% in urban areas.
The average annual spend per student is ₹3,988 in cities and ₹1,793 in rural areas. Costs rise sharply with education level — from just ₹525 at the pre-primary level to ₹6,384 at higher secondary. In some states like Bihar, families spend more on coaching than on school itself.
Why parents feel it is compulsory
Several factors push parents towards private coaching. Many households now have both parents working, leaving little time to support children academically. Curricula have become more complex, and peer pressure plays a strong role — once one child in a neighbourhood joins coaching, others follow.
Parents also see coaching as an investment for high-stakes exams, particularly for engineering and medical admissions. The result is that coaching has become deeply entrenched, often overshadowing classroom learning in schools.
Attempts at regulation
The rapid expansion of coaching centres has been accompanied by aggressive advertising, with promises of “guaranteed ranks” and “sure-shot success.” To address this, the Ministry of Education has issued guidelines to regulate coaching centres, including restrictions on age of enrolment and banning misleading claims.
The Central Consumer Protection Authority (CCPA) and the Advertising Standards Council of India (ASCI) have also cracked down on false advertising. State governments have proposed bills to regulate fees and registration.
However, enforcement remains inconsistent, with rules often existing only on paper. Experts argue that without strong monitoring and penalties, exploitative practices will continue.
Will 18% GST reduce dependence?
So far, the tax burden has not changed parental behaviour in a significant way. Families continue to see coaching as non-negotiable, even if it means cutting back elsewhere. For structured courses like JEE and NEET coaching, the GST is simply absorbed into household education budgets.
At best, the tax may discourage casual or short-term classes and shift some demand to smaller local tutors who may operate informally. Larger institutes often adapt by staggering payments or offering instalment schemes.
Alternatives and solutions
While GST may nudge behaviour, experts say systemic fixes are needed. Stronger school teaching, remedial classes within schools, and better teacher training could reduce dependence on coaching.
Technology also offers alternatives. Free or low-cost AI study tools such as ChatGPT’s study mode and other digital assistants can provide personalised practice and explanations at a fraction of the cost. But they need careful use and oversight to be effective.
Conclusion
The 18% GST on coaching highlights the government’s effort to draw families back to schools, but it is unlikely to end the coaching culture on its own. For parents, coaching remains less a choice than a necessity born of competition, curriculum stress, and peer pressure.
Real change will require improving classroom teaching, offering credible school-based support, and promoting affordable digital learning tools. Until then, private coaching in India will remain taxed, expensive, and in high demand.