Union Finance Minister Nirmala Sitharaman on Wednesday strongly countered allegations regarding the Goods and Services Tax (GST), accusing opposition members of “twisting facts” during the general discussion on the Union Budget 2026–27 in the Lok Sabha.
Responding directly to remarks made by a Member of Parliament, Sitharaman said she had “heard the Hon’ble MP very carefully” and expressed regret that facts “known to everyone in this House” were being misrepresented.
“Zero GST on Milk Since 2017”
Referring to comments about taxation across an individual’s life cycle, the Finance Minister asserted that milk has attracted zero GST ever since the rollout of the indirect tax regime on 1 July 2017.
She questioned the basis of claims suggesting otherwise, stating that there has been no GST on milk since inception.
Education and Recognised Qualifications Exempt
Sitharaman reiterated that education services are exempt from GST. She clarified that from pre-school to higher secondary education, there is no GST. Education leading to recognised qualifications also remains exempt.
She further emphasized that books, textbooks and notebooks have not attracted GST since 2017. Addressing specific references made in the debate, she stated that pencils, sharpeners, erasers, exercise books, notebooks and maps are also subject to zero GST.
Her remarks were aimed at rebutting claims that GST has imposed additional burdens on students and families.
Healthcare Services and Insurance
On healthcare, Sitharaman thanked members of the GST Council and stated that healthcare services — including treatment, diagnosis and care — have remained exempt from GST since 1 July 2017.
She also highlighted that health and life insurance on individual plans were brought down to 0% GST under the “Next Generation GST reforms” introduced in September 2025.
The Finance Minister presented these measures as evidence of the Council’s effort to protect essential and welfare-linked services from taxation.
No GST on Funeral Services
Responding to assertions that individuals are charged GST even after death, Sitharaman clarified that funeral services have never attracted GST.
She rejected claims suggesting that such services were taxed under the GST framework.
Political Undercurrent
In a sharp political remark during her speech, the Finance Minister suggested that if any additional charges were being imposed in certain regions, it may not be attributable to GST but to local practices. The comment drew reactions across the House.
Her intervention forms part of a broader government push to defend GST against criticism that it has increased the financial burden on citizens. By listing zero-rated and exempted sectors on the floor of Parliament, the government signalled its intent to counter what it describes as persistent misinformation regarding the indirect tax regime.
As debates over tax rationalisation and GST reform continue, the issue is expected to remain central to parliamentary discussions in the coming weeks.
