In a landmark move to make education more affordable and inclusive, the Ministry of Education (MoE) has unveiled the NextGen GST Reforms, announcing significant tax reductions and exemptions on essential school-related items. The reforms are aimed at benefiting the school education sector, making learning materials and infrastructure more accessible to students across India.
Under the new reforms, there will be zero GST on essential stationery and learning materials, including pencils, sharpeners, crayons, erasers, exercise books, graph books, maps, and charts. This bold step is expected to reduce the financial burden on parents and schools, and encourage a culture of learning and creativity among students.
NextGen GST Reforms 2025: Key Highlights
The NextGen GST Reforms mark a transformative phase in India’s education policy and taxation system. The major highlights include:
- 0% GST on stationery and learning materials such as pencils, erasers, crayons, sharpeners, exercise books, graph books, maps, and charts.
- Reduction in GST on toys and bicycles from 12% to 5%, promoting child-friendly, skill-based learning and eco-friendly commuting for students.
- School bus fees for vehicles with 10 or more seats reduced from 28% to 18%, easing transportation costs for educational institutions and parents.
The Ministry of Education described this as a “people-centric tax reform” focused on empowering students, teachers, and institutions by making education-related essentials more affordable.
A Step Towards Quality and Affordable Schooling
According to the Ministry, the NextGen GST reforms are designed to strengthen the quality of education while ensuring that no child is deprived of learning opportunities due to high costs of educational materials.
“These GST reforms aim to make learning more fun and engaging while making educational resources and infrastructure affordable and accessible for all,” said the official statement from the Ministry of Education.
The ministry has also announced a national awareness campaign titled “GST Bachat Utsav 2025”, inviting citizens to celebrate the #NextGenGSTReforms that aim to transform schooling and educational affordability in India.
Bridging Gaps in Education Spending
While the government’s move to introduce tax relief in the education sector has been widely welcomed, experts continue to highlight the need for higher education investment.
For decades, educationists and policy experts have called for a 6% Gross Domestic Product (GDP) allocation toward education, as recommended by the National Education Policy (NEP) 2020. However, India’s current education expenditure remains around 4.1% of GDP, despite multiple policy commitments.
Recent reports from the Comptroller and Auditor General (CAG) and budget documents revealed that nearly ₹48,000 crore collected through additional education cess—intended to fund secondary and higher education—has yet to be utilized effectively.
Boosting Accessibility and Inclusion
The NextGen GST reforms are expected to reduce the cost of schooling, especially for families in rural and low-income communities. By cutting taxes on stationery, bicycles, and school buses, the reforms will indirectly improve school attendance, encourage eco-friendly mobility, and foster equitable access to learning tools.
The Ministry of Education emphasized that the initiative supports the government’s broader vision of a “Viksit Bharat by 2047”—a digitally empowered, inclusive, and knowledge-driven nation.
The NextGen GST Reforms 2025 mark a significant stride in India’s education journey, aligning fiscal policy with the nation’s developmental goals. With zero GST on learning materials and reduced taxes on school essentials, the reforms will not only ease financial stress on families and institutions but also reinforce India’s commitment to accessible and quality education for every child.
