2024-08-04 14:14:54
New Delhi: GST collection from coaching institutes has more than doubled between 2019 and 2024. It has increased from Rs 2,241 crore to Rs 5,517 crore. Congress General Secretary Jairam Ramesh gave this information citing data presented in the Rajya Sabha by the Higher Education Department. He said that there has been an astonishing increase of 146 per cent in GST collection. Some part of this may be due to better recovery. But, it is also an indication of an increase in the size of the market. Congress on Saturday said that a comprehensive policy is urgently needed to address the problem of rapidly growing coaching institutes in the country. The party has called for changes in the curriculum, more resources and investment in the quality of education for all exam takers.
Equal to almost two-thirds of the Union Budget allocation
Jairam Ramesh said in a post on the social media platform ‘X’, ‘What is worrying is that the GST collection of Rs 5,517 crore collected at the rate of 18 per cent in the financial year 2023-24 shows that the market of coaching institutes is Rs 30,653 crore annually. This is a very worrying figure, as it is equal to almost two-thirds of the central budget allocation for higher education in the financial year 2023-24.’
Earlier, Minister of State for Education Sukanta Majumdar had told the Rajya Sabha that as per data provided by the Finance Ministry, there has been a significant increase in GST collection from coaching centres in the last five years. According to data from the Revenue Department, GST revenue from coaching institutes was recorded at Rs 2,240.73 crore in 2019-20, which more than doubled to Rs 5,517.45 crore in 2023-24. In 2020-21, there was a slight decline in the collection as compared to the previous year and it stood at Rs 2,215.24 crore. After this, the collection figures increased to Rs 3,045.12 crore in 2021-22 and to Rs 4,667.03 crore in 2022-23.
Majumdar, the Minister of State for Education, responded to questions about the size and rapid expansion of the coaching industry. This included a discussion on the estimated value of the coaching sector and its projected growth in the coming years.
Comprehensive policy solutions needed
Congress MP JB Mather Hisham had last week questioned the central government on coaching centres and issues related to them after three UPSC candidates died due to waterlogging in the basement of a coaching centre in Delhi.
Responding to another question in the Rajya Sabha on whether the government has taken cognizance of the rising cases of student suicides, fire incidents and deficiencies in facilities and teaching methods in private coaching centres in the country and whether specific instructions have been issued on their functioning, Majumdar referred to the guidelines issued in January this year.
In response to this tragic incident, the Delhi government took decisive action and sealed around 30 basements belonging to such coaching centres. These establishments were reported to be violating the rules.
The Congress leader said the GST figures were underestimating the market of coaching institutes, which are notorious for their poor regulation.
He said, “India needs a comprehensive policy solution to this rapid growth of coaching institutes. The curriculum needs to be revised and brought in line with the school curriculum. More resources need to be made available for all test takers. Investments must be made in the quality of education.”