Rajpura, 18th August
The Punjab Unaided Colleges Association (PUCA) has urged the Union Government to exempt educational institutions from the ambit of Goods and Services Tax (GST) in order to reduce the fee burden on poor and middle-class families.
Dr. Anshu Kataria, Chairman PUCA and Chairman of Aryans Group of Colleges, Rajpura (near Chandigarh), said that private institutions are compelled to pay heavy GST charges without receiving any direct benefits. “A GST of 18 percent is levied on the construction of buildings and 28 percent on the installation of basic infrastructure like air conditioners. These additional costs ultimately get transferred to students and parents, inflating the fee structure,” Dr. Kataria pointed out.
He highlighted the mismatch in government priorities, noting that while the Union Government spends only about 2.5 percent of its budget on education, some state governments allocate up to 21 percent. “India may have become the world’s fourth-largest economy, surpassing Japan, but our GDP per capita is still lagging. Education is the only tool that can bridge this gap. The government must not only increase investment in higher education but also provide GST exemptions to educational institutions,” Dr. Kataria urged.
PUCA Patron Manjit Singh supported this demand, stating, “The burden of GST is ultimately being borne by students and parents. Exempting educational institutions from GST will directly benefit lakhs of families and make quality education more affordable.”
Amit Sharma, Senior Vice President of PUCA, further emphasized, “Education is not a business luxury; it is a basic necessity. If the government is serious about building a knowledge-driven economy, then GST relief for institutions is essential. This will also encourage investment in infrastructure without placing the financial burden on parents.”
Dr. D J Singh, noted educationist and Executive Member of PUCA suggested that the GST Council should also remove tax on all study resources including textbooks and online content being created for imparting education in schools, colleges, and universities — both government and private. He further added that there should be no taxes on other services provided by these institutions, as in one way or another, the income supports the growth and strengthening of educational institutions.
Referring to recent developments, PUCA highlighted that Prime Minister Sh. Narendra Modi, in his Independence Day speech on August 15, 2025, announced that near Diwali, major benefits will be given to the people of India through changes in GST. PUCA expects that the Government will also consider the genuine needs of educational institutions in these reforms and provide the much-awaited GST relief.
Reflecting on the broader vision, Dr. Kataria added, “While India’s freedom fighters had the courage to fight for independence, today’s youth must develop the courage to embrace failures and learn from them. We live in a society where failure in exams sometimes ends a life. That is not education, that is cruelty. In 2025, we must empower our youth to dream without fear.”
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