Education plays an important role in a country's economic progress. The Indian government spends a significant portion of its GDP, around 4%, on education, with half of that going towards primary education. There is uncertainty around how the new GST regime will impact the education sector, as coaching centers and training institutes were previously exempt from taxation but may now be taxable. While some education services provided by the government are exempt, it is unclear whether private coaching and training centers will receive exemptions. The implementation of GST could increase costs for education through higher taxes and increased regulatory and administrative requirements for service providers, but it may also simplify the process of claiming input tax credits.