The Government of India has recently announced a big relief for parents and students by reducing the Goods and Services Tax (GST) on several stationery products. The GST Council, headed by Finance Minister Nirmala Sitharaman, took this decision in its recent meeting held on 3rd September 2025. With this change, items like pencils, notebooks, sharpeners, crayons, globes, and even erasers will now come under the zero-tax category.
This decision is expected to reduce the financial burden on households, especially parents who spend regularly on their children’s education needs. By lowering the cost of basic stationery products, the government aims to make education more affordable and accessible for everyone.
In this article, we will understand in detail about the new GST rate on stationery products, how much parents can save, the impact on the education sector, and other important changes introduced in the new GST structure.
GST Rate Change for Stationery Products
The recent announcement has brought major changes to the tax structure for education-related products. Earlier, most stationery products were placed in the 12% GST slab, while erasers were taxed at 5%. Now, the government has completely removed the tax burden from these products.
Products Now at 0% GST
According to the official press release by the central government, the following stationery items are now tax-free:
- Pencils
- Sharpeners
- Erasers (rubbers)
- Crayons
- Pastels
- Maps
- Charts
- Globes
- Notebooks
- Practice books
Earlier, a globe priced at ₹500 would cost around ₹560 after adding 12% GST. With this tax reduction, the same globe will now cost only ₹500, giving direct savings to families. Similarly, notebooks and pencils, which are used on a daily basis, will now be more affordable.
Why the GST Cut on Stationery is Important
Education is a basic necessity for every family, and stationery forms the backbone of learning for school-going children. The rising prices of notebooks, pencils, and other items were becoming a burden for parents. With this reform, the government has directly reduced the cost of education materials, bringing relief to millions of households.
For example:
- A pack of crayons that earlier cost ₹120 with GST will now be available at around ₹107.
- A dozen notebooks priced at ₹600 including GST will now be cheaper by nearly ₹64.
- A rubber, which was earlier taxed at 5%, will now be fully exempt, making it more affordable.
This may sound like a small saving at the individual level, but when calculated annually, especially for families with multiple children, it adds up to a significant amount.
GST Structure: Major Changes Announced
Apart from changes in the stationery segment, the GST Council also announced structural reforms in the overall tax system.
- 12% and 28% slabs removed – The GST Council has decided to discontinue the 12% and 28% tax slabs. This means products earlier taxed under these categories will now shift to the new simplified structure.
- New 40% tax slab introduced – While discontinuing the older slabs, the government has also introduced a new 40% slab for luxury and sin goods.
- Two-tier GST system – The new tax system will mainly work under two standard rates – 5% and 18%. This will make GST compliance easier for businesses and bring more clarity for consumers.
- Implementation date – The new GST rates will be applicable from 22nd September 2025 onwards. However, for some items, the implementation will be done in a phased manner.
Impact on Parents and Students
The biggest impact of this GST rate cut will be felt by parents and students. Every year, families spend thousands of rupees on school supplies, and a large portion of this cost is due to taxes. With the new structure:
- Cost of education will come down – By removing GST on essential items, the government has ensured that parents can save money which can be used for other educational purposes like tuition or digital learning tools.
- School managements will also benefit – Schools purchase bulk stationery items for their students. With lower costs, schools can either pass on the benefits to students or improve the quality of learning material.
- Boost to literacy and education accessibility – Cheaper educational products may encourage families from lower-income backgrounds to provide better stationery for their children, leading to improved learning outcomes.
Stationery Products: Old vs New GST Rates
To understand the savings clearly, let us look at the before-and-after impact of the GST changes:
| Product | Earlier GST Rate | Current GST Rate |
|---|---|---|
| Pencils | 12% | 0% |
| Sharpeners | 12% | 0% |
| Erasers | 5% | 0% |
| Crayons | 12% | 0% |
| Pastels | 12% | 0% |
| Maps | 12% | 0% |
| Charts | 12% | 0% |
| Globes | 12% | 0% |
| Notebooks | 12% | 0% |
| Practice Books | 12% | 0% |
This table clearly shows how almost every stationery product used in schools is now tax-free.
Wider Economic and Social Impact
While this decision directly benefits households, there are also some larger benefits for the economy:
- Encouragement to local manufacturers – With tax exemptions, local stationery manufacturers will be able to sell products at more competitive prices. This could also boost demand and production.
- Positive social impact – Education is a priority sector, and by making it cheaper, the government is indirectly investing in the future workforce of India.
- Relief in inflationary pressure – At a time when inflation is impacting families, cheaper school supplies will ease some financial stress.
Other GST Cuts Alongside Stationery
It is important to note that stationery products are not the only category where the government has cut GST rates. Recently, the GST Council also reduced tax rates on several items related to agriculture and essential needs. For example, fertilizers, tractors, and irrigation equipment have also become cheaper after the recent decisions. You can read more about these reforms in detail here: GST rate cut for farmers, tractors, irrigation and fertilizers.
In addition, the government has also revised rates across different sectors where some products are cheaper and some may become costlier. To get a complete list of all items under the new tax regime, you can refer to GST rate changes: cheaper and costlier products explained.
Example: Savings Calculation for a Family
Let us take a simple example to understand the impact of this tax reform.
Suppose a family spends around:
- ₹2,000 on notebooks in a year
- ₹500 on pencils and sharpeners
- ₹800 on crayons, pastels, and charts
- ₹200 on erasers
Earlier, the total tax burden would have been:
- Notebooks (12%) = ₹240
- Pencils & Sharpeners (12%) = ₹60
- Crayons, Pastels, Charts (12%) = ₹96
- Erasers (5%) = ₹10
Total tax paid = ₹406 per year
Now, with zero GST on these items, the same family will save ₹406 every year. This amount, when multiplied across millions of families in India, represents huge national savings.
Implementation Timeline
- Decision Date – 3rd September 2025
- Official Notification Release – 4th September 2025
- Effective Date – 22nd September 2025
- Phase-wise roll-out – For some non-essential items, the new GST rates will be implemented gradually.
Challenges Ahead
Although this is a very positive step, some challenges remain:
- Monitoring implementation – The government will have to ensure that retailers actually pass on the benefits of tax reduction to consumers and do not keep the prices the same.
- Revenue impact – Removing GST on stationery means the government will lose some tax revenue, but this can be compensated by the new 40% slab on luxury goods.
- Awareness – Parents and schools need to be aware of these changes to make sure they get the benefits of the reduced GST.
Conclusion
The decision of the GST Council to bring down the tax rate on stationery products to 0% is a welcome move for Indian parents, schools, and students. By removing GST on essential education supplies like notebooks, pencils, and erasers, the government has directly reduced the financial burden of education.
This reform, along with other GST changes such as the introduction of a two-slab system (5% and 18%) and the discontinuation of 12% and 28% categories, shows that the government is working to simplify taxation and support common people.
Parents can now expect lower expenses for their children’s education, and schools can provide better resources at affordable prices. In the long run, such steps will contribute to better access to education and overall national development.
