Union Budget 2025 | Urge govt to consider making GST on education services ‘zero rated supply’: Naveen Goyal, Founder & CEO, Meritto

Union Finance MInister Nirmala Sitharaman is set to present the Union Budget on February 1 in the Lok Sabha. The Economic Survey by the Finance Ministry will be released on January 31.

In this context, several industry leaders have opened up about their expectations from the Budget.

Naveen Goyal, Founder & CEO at Meritto said, "Education is not just an investment in individuals but a lever for any country’s transformation. As India’s education sector continues to evolve, the upcoming Union Budget 2025 has an important role to play in addressing key challenges. First, we urge the government to consider making GST on education services ‘zero rated supply’ i.e. the educational institutions be eligible to claim refund of GST paid on input and input services."

"Currently, while education services are exempt from GST, institutions face GST on input services such as technology and infrastructure, which they cannot claim credit for. This leads to increased operational costs, forcing educational institutions to pass on these costs to students, making education more expensive. A 0% GST on education services will enable institutions to claim input tax credit, offering financial relief and making education more affordable for students across India," he also said.

Goyal is also advocating a push towards digitisation in education. Regarding this he said, "We strongly support the push for digitisation in education. Incentives such as rebates or subsidies for educational institutions investing in technology will help drive the digital transformation needed to empower students and educators alike."

"In addition, we call for increased allocations to strengthen digital infrastructure, especially in rural and underserved areas. This will ensure broader access to quality education, bridging gaps and fostering inclusivity. A focus on simplifying compliance frameworks for educational organizations will also allow them to direct more resources towards solving core educational challenges, while maintaining robust standards for data security and privacy," he added.

Goyal also said, "To foster innovation and accelerate the adoption of technology in education, we propose reducing GST on technology-enabled educational services. This will lower barriers for institutions and drive greater uptake of tools that benefit both educators and students. Additionally, tax incentives for startups focusing on research and development in automation, AI, and analytics will catalyze new, scalable solutions for educational institutions, improving the quality and accessibility of education."

"Finally, to ensure digital education reaches every corner of India, the government should prioritize foundational investments in affordable, high-speed internet and reliable electricity. Accessible digital devices—be it laptops, tablets, or mobile phones—should be made available to students from low-income families. Localized solutions, such as content in regional languages, will make a significant impact, and equipping teachers with digital tools will ensure technology complements the human touch in education".

"With the government's focus to double the GER in the next decade, these measures will ensure that education becomes more accessible, affordable, and aligned with the technological advancements shaping our future," Goyal believes.

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.