Edtech company Great Learning has called for a more balanced approach to taxation on digital education services and improved access to affordable education loans, saying these steps are critical to accelerating upskilling efforts across India.
Highlighting gaps in the current Goods and Services Tax (GST) framework, the company noted that while core educational services offered by formal institutions are exempt from GST, many online courses, coaching programmes and digital learning offerings continue to attract an 18 per cent tax. This, it said, adds to the financial burden on learners and education providers, particularly in a price-sensitive market focused on skill-based learning outside formal curricula.
The company acknowledged recent GST rationalisation measures, including exemptions on certain education-related inputs such as stationery and learning materials, but said these steps do not fully address the challenges faced by young learners on the ground. For many working professionals and youth, taking time off to pursue long-term formal education is not feasible, making short-term online courses the only practical option to acquire new skills and remain employable.
Great Learning argued that the continued 18 per cent GST on standalone digital learning services needs a calibrated review that prioritises access and affordability, especially as India’s job market evolves rapidly.
In addition to tax reforms, the company stressed the importance of expanding access to low-cost learner financing. Easier availability of education loans with lower interest rates for upskilling programmes, it said, could significantly improve participation in digital education.
Commenting on the issue, Arjun Nair, Co-founder of Great Learning, said that when learning becomes both accessible and affordable, digital education can scale in a sustainable and inclusive manner, delivering long-term impact for India’s workforce.