Finance Minister Nirmala Sitharaman Clears The Air On GST Exemptions For Education And Healthcare

Last Updated:February 13, 2026, 12:51 IST

India’s finance minister, Nirmala Sitharaman, came up with a clarification regarding a recent question raised by an MP in Lok Sabha.

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Finance Minister speaks on GST on essential products.(Photo Credit: Instagram)

India’s finance minister Nirmala Sitharaman on Wednesday, February 11, responded to concerns raised by Lok Sabha MP Abhishek Banerjee regarding GST on multiple essential goods like milk and educational supplies, including pencils, sharpeners, erasers, exercise books, notebooks and maps. The finance minister shared a detailed post on X and also spoke about the matter in the Lok Sabha.

“I heard Hon’ble MP (LS) @abhishekaitc’s speech very carefully. Unfortunately, he twisted facts which are known to everyone in this House. Very conveniently, he spoke about the life cycle of an individual & lied,” the finance minister wrote on X.

Finance Minister’s Clarification Over GST On Milk, Education

In her response in the Lok Sabha, India’s finance minister Nirmala Sitharaman shed light on the fact that ever since the goods and services tax (GST) was introduced back in 2017, milk – an essential dairy product – has been completely exempt from GST. She also remarked on the MP who had raised the question, saying, “Is he taking the members of this House as fools?”

Notably, the 56th GST council meeting introduced major changes to the GST rate on milk and dairy products on September 3, 2025. Milk has always been free of GST being levied. However, its byproducts such as ghee, cheese and butter have been taxed at applicable rates. Even those rates have now been lowered from 12 per cent to 5 per cent by the Indian government.

In her response, the finance minister also confirmed there is no GST on education and related supplies for students. “Pre-school to higher secondary education, there’s no GST. Education leading to recognised qualifications, there’s no GST. On books, textbooks & notebooks, there’s no GST since 2017,” she said. “Pencils, sharpeners, erasers, exercise books, notebooks, and maps have zero GST.”

GST On Healthcare Services

During her response, Nirmala Sitharaman also went ahead and confirmed that there is no goods and services tax applied on healthcare services like treatment and diagnosis. She thanked the members of the GST Council for the same, while adding, “Health & life insurance on individual plans was brought down to 0 per cent in the Next Gen GST reforms (September 2025).”

During their set of claims, the concerned MP even said that the GST is also charged on the death of individuals through funeral services. To which the finance minister said, “There was no GST on funeral services ever in the first place.”

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