Education, healthcare inflation could eat into GST 2.0 gains | Hyderabad News

Hyderabad: Even as GST 2.0 promises tax relief for households, rising education and healthcare costs could erode much of the benefit in Telangana, with prices in both sectors recording steep increases over the past three years, according to the CESS study.The study, which examined consumer price trends in Telangana between April 2022 and Oct 2025, found that education costs rose by 38%, while healthcare costs increased by 20% during the period.Education emerged as one of the fastest-growing expenditure categories. Its Consumer Price Index (CPI) climbed from 173 in May 2022 to 239 in Aug 2025, reflecting rising spending on tuition fees, other educational charges, stationery and books.Healthcare costs also registered a steady increase. The health CPI rose from around 192 in April 2022 to over 230 by Oct 2025, driven by higher medical charges, medical devices and other healthcare-related expenses.The study estimates that GST 2.0 could provide some relief in both sectors. GST on education-related spending is projected to decline from a 5-13% range to 3-13%, while GST on non-hospitalisation medical expenditure could fall from 8-9% to 4-5%.However, the researchers caution that lower tax rates may not automatically result in lower household spending. With education and healthcare costs continuing to rise, the gains from GST relief could be absorbed by inflationary pressures. The study concludes that the proposed tax cuts are more likely to cushion rising costs than significantly reduce household expenses.