Congress highlights issue of GST collection from training institutes, asks govt for political solution

The Congress on Saturday stressed that India urgently needs a comprehensive policy solution to the growing number of counselling institutes and called for a review of syllabuses, providing more resources to all exam-takers and investing in quality education.

Congress general secretary in-charge of communications Jairam Ramesh said data submitted to the Rajya Sabha by the Department of Higher Education shows that GST collections from consultancy institutes have increased sharply between 2019 and 2024, from Rs 2,241 crore to Rs 5,517 crore.

He added that there was a staggering 146 per cent increase in Goods and Services Tax (GST) revenue. Some of this can be attributed to better enforcement, but it is also likely to be due to the increase in market size.

“Worryingly, the GST receipts of Rs 5,517 crore in fiscal 2024, collected at a rate of 18 per cent, suggests that the market for coaching institutes is Rs 30,653 crore per annum. This is an extremely worrying figure as it amounts to about two-thirds of the Union Budget for higher education in fiscal 2024,” Ramesh said in a post on X.

Earlier this week, Minister of State for Education Sukanta Majumdar informed the State Council that as per data made available by the Ministry of Finance, GST collections from education and training centres have increased significantly in the last five years.

GST revenue from training activities during the fiscal year 2019-20 stood at Rs 2,240.73 billion and more than doubled in the fiscal year 2023-24 to Rs 5,517.45 billion, as documented by the Department of Revenue, Ministry of Finance.

In 2020-21, there was a slight decline compared to the previous year and the collection amount was Rs 2,215.24 crore. Subsequently, the collection amount increased to Rs 3,045.12 crore in 2021-22 and increased to Rs 4,667.03 crore in 2022-23.

MoS Education Majumdar answered questions on the scale and rapid growth of the coaching industry, including discussing the estimated value of the coaching sector and its expected growth in the coming years.

Congressman Jebi Mather Hisham questioned the Centre on coaching centres and related issues, days after three UPSC aspirants died in a flooded basement of a coaching centre in Delhi last weekend.

Replying to another question in the Rajya Sabha on whether the government had taken into consideration the rising number of student suicides, fire incidents and shortcomings in facilities and teaching methods at private coaching centres in the country and whether detailed instructions had been issued for their functioning, Majumdar pointed to the guidelines issued in January this year.

In response to the tragic incident, the Delhi government took strict action by shutting down around 30 basements belonging to such training institutes. These were reported to have violated applicable regulations. The GST figures probably underestimate the training institute market, which is known for its weak regulations, the Congress leader added.

“India needs a comprehensive policy solution to the growing number of counselling institutes – syllabuses need to be revised and aligned with school curriculum, more resources need to be allocated to all exam-takers and there needs to be investment in quality education,” he said.

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