Finance Minister Nirmala Sitharaman has addressed recent claims raised in Parliament regarding the Goods and Services Tax (GST) on milk, education, and a range of essential goods and services. Responding to assertions by Lok Sabha MP Abhishek Banerjee, FM Sitharaman emphasised that GST exemptions on these items have remained unchanged since the tax regime was introduced in 2017. The issue drew attention after the MP cited daily-use products and educational materials, prompting the government to clarify which goods and services are exempt from GST.
The Finance Minister stated, “Pencils, sharpeners, erasers, exercise books, notebooks and maps have zero GST.” The clarification followed public debate and parliamentary questions on the tax treatment of school-related supplies. She reiterated that essential educational items have long been exempt and rejected suggestions that GST has been imposed on them.
GST on milk
On milk, Sitharaman reaffirmed that the product has been fully exempt from GST since its inception. While the 56th GST Council meeting reduced rates on milk by-products such as ghee, cheese and butter from 12% to 5%, she said milk itself remains outside the GST net. Questioning the accuracy of claims made in Parliament, the Minister remarked, “Is he taking the members of this House as fools?” to underline what she described as policy consistency.
GST on education
Education was also addressed in detail. “From pre-school to higher secondary education, there’s no GST. Education leading to recognised qualifications has no GST. On books, textbooks and notebooks, there’s been no GST since 2017,” Sitharaman said.
GST on healthcare, funeral services
Healthcare services were similarly clarified. The Finance Minister stated that treatment, diagnosis and care services have carried zero GST since July 2017, with additional relief introduced under the Next Gen GST reforms. “Health and life insurance on individual plans was brought down to 0% in the Next Gen GST reforms in September 2025,” she said.
I heard Hon’ble MP (LS) @abhishekaitc‘s 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. Ever since the GST was introduced in 2017, there has been… pic.twitter.com/znWQ08odn1
— Nirmala Sitharaman Office (@nsitharamanoffc) February 11, 2026
Responding to claims that GST is levied on funeral services, Sitharaman categorically denied this. “There was no GST on funeral services ever in the first place,” she said, adding that end-of-life services have remained exempt since GST was introduced.
Criticising the nature of the debate, Sitharaman said, “I heard the Hon’ble MP’s 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 and lied.”
GST counter
Following the exchange, Trinamool Congress MP Abhishek Banerjee took to social media platform X on Thursday to respond. “I thank Hon’ble Finance Minister for so carefully listening to my speech. Though I wish she’d listen as carefully to the people of Bengal when they ask for their MGNREGA, PMAY, PMGSY and JJM dues. The Finance Minister says I ‘twisted facts.’ Let me untwist them for her. She’s absolutely right, there’s no GST on fresh liquid milk. But perhaps she hasn’t seen the mother who can’t afford fresh milk, who stretches her budget by mixing powdered milk for her infant. That powdered milk? 5% GST. Zero tax on what she can’t buy, 5% tax on what she’s forced to buy. She’s correct again, textbooks have no GST. But the graph paper a student uses for his/her math assignment? 12% GST. The laboratory notebook for the science practical? 12% GST. The crayons for the drawing class? 12% GST.”
I thank Hon’ble Finance Minister @nsitharaman for so carefully listening to my speech. Though I wish she’d listen as carefully to the people of Bengal when they ask for their MGNREGA, PMAY, PMGSY and JJM dues. The Finance Minister says I ‘twisted facts.’ Let me untwist them for… https://t.co/bpEGPQ5SXj pic.twitter.com/awa2frEFFW
— Abhishek Banerjee (@abhishekaitc) February 12, 2026
He added: “On healthcare, she’s technically accurate as always; consultation and treatment are GST-free. But the oxygen cylinder that keeps a COVID patient alive? 12% GST. The insulin injection that prevents a diabetic from dying? 5% GST. The anesthesia for the surgery? 12% GST And yes, funeral services are exempt. But the agarbatti we light for our departed? 5% GST. EVEN GRIEF HAS A PRICE TAG IN ‘NEW INDIA.’ This, Honourable Finance Minister, is EXACTLY the problem I was highlighting. Until you understand the difference between what’s written in the GST Act and what’s written on a poor family’s grocery bill, you’ll keep living in your India while we live in ours. Thank you for proving my point better than I ever could.”
