GST on milk and education? Here's a fact check by Finance Minister in Lok Sabha

Recently a Lok Sabha MP brought up the issue of GST on several essential goods like milk, and educational supplies like pencils, sharpeners, erasers, exercise books, notebooks, and maps. In response, Finance Minister Nirmala Sitharaman tweeted a fact check and also spoke about it in Lok Sabha.

The Finance Minister said on X: “I heard Hon’ble MP (LS) speech very carefully. It's unfortunate that he twisted facts which are known to everyone in this House. Very conveniently he spoke about the life cycle of an individual & lied.”

GST on milk and education?

The Finance Minister said that ever since the GST was introduced in 2017, milk has been completely exempt from GST.

He also pointed out, referring to the Lok Sabha MP who raised the question “Is he taking the members of this House as fools?”

On September 3, 2025, the 56th GST council meeting introduced major changes to the GST rate on milk and dairy products. While milk itself has always been free from GST, by-products of milk like ghee, cheese, butter, were previously taxed, but the rates have been now been lowered from 12% to 5%.

The Finance Minister said on X that there is no GST on education, meaning it is effectively exempt from GST.

The Finance Minister said: “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.”

The Finance Minister said that the said MP even spoke about pencil, sharpener etc and asked how can someone lie so much?

The Finance Minister said: “Pencils, sharpeners, erasers, exercise books, notebooks, and maps have zero GST.”

CA Ashish Niraj, Partner, A S N & Company, said to ET Wealth Online: “ The tweet by Honorable Finance Minister has rightly explained that there is no GST on Formal Education on school education upto higher secondary, recognized universities or approved vocational courses. However commercialization of education is reality in present era hence GST is applicable on Private Coaching, unapproved vocational trainings, online certificate courses."

Niraj says that the FM’s tweet is also correct when it says there is no GST on Printed books, notebooks and exercise books, children's picture, drawing or coloring books, maps, file,folers etc which are basic use for education.

Niraj says: "However GST is levied on paper boards, printed advertising materials etc. There is no GST on pencil, sharpener, eraser etc but GST is leveid on Pens, staplers, whiteboard markers ,highlighters etc."

Niraj says that the tweet by the FM has correctly said that GST is exempt on clinical establishments etc. consultation, diagnostic and services of Doctors, Nurses are exempt.

Niraj says: "However GST is applicable Hospital Room rents of above Rs 5000 except ICU/CCU etc.Most Life saving medicines are exempt but some other medicines are charged to GST. GST Exemption on Medical and term insurance is the recent decision which is really a welcome step."

GST on health care services?

The Finance Minister said that on healthcare services (treatment, diagnosis, care), she would want to thank the members of the GST Council, there's 0% GST since July 1, 2017.

The Finance Minister said on X: “Health & life insurance on individual plans was brought down to 0% in the Next Gen GST reforms (September 2025).”

The Finance Minister said that the Lok Sabha MP even said that an individual is charged GST even after his death.

The Finance Minister said: “There was no GST on funeral services ever in the first place.”