GST New Rules 2026 : Recently in the Lok Sabha, an MP raised the issue of GST being imposed on essential items related to milk and education—such as pencils, sharpeners, erasers, copies, and notebooks. The MP claimed that GST is being charged on necessary items like milk, pencils, sharpeners, erasers, notebooks, and maps. Responding to this, India’s Finance Minister Nirmala Sitharaman posted on the social media platform X and also replied in the Lok Sabha, calling these claims incorrect. Let’s understand the details.
GST New Rules 2026 : Is GST levied on milk by the government?
Finance Minister Nirmala Sitharaman clearly stated that since GST was implemented in 2017, milk has been completely exempt from GST, meaning no tax is levied on milk. She also said that in the 56th GST Council meeting held on 3 September 2025, the GST rate on milk products such as ghee, paneer, and butter was reduced from 12% to 5%, meaning the tax on these items was cut.
Is GST levied on items like pencils and sharpeners?
The Finance Minister also clarified the claims regarding GST on pencils and sharpeners. She stated that education from pre-school to higher secondary level is exempt from GST. Recognized degree programs or courses also do not attract GST. She further said that books, textbooks, and notebooks have had 0% GST since 2017. Pencils, sharpeners, erasers, exercise books, and maps are also exempt from GST.
GST on health services
The Finance Minister stated that treatment, diagnostic tests, and services provided by doctors and nurses have been under 0% GST since 1 July 2017. General services provided by clinics and hospitals are GST-free. Additionally, in September 2025, the government reduced GST on individual health and life insurance plans to 0%, which is considered a major decision. She also clarified that funeral services have never been taxed under GST.