The gender-neutral toilet at the Indian School of Development Management (ISDM) was built after Koushik Hore, a resident of West Bengal, raised the issue with the management, institute officials said.
They claimed that this was probably the first time an educational institute in India had taken such an initiative.
Now, the toilet can be used by anybody regardless of their gender, the officials said, adding that it was inaugurated earlier this month.
Hore, a post-graduate student at ISDM, said, "I took up the problem with the institution's management to resolve my conflict of choosing between the men's and women's toilets."
The institution's management is sensitising and educating students, staff and faculty about the proper usage of the toilet, the officials said.
"Following Koushik's request, the idea was conceptualised four months ago and it was implemented in three to four weeks. We are sensitising people on the usage of the toilet as hygiene is of utmost importance," ISDM founder Gaurav Shah said.
Urging other educational institutes to set up gender-neutral toilets, Hore said that he felt this is a "broader way of looking at the issue".
"Gender-neutral toilets are more inclusive and gives relief to people of the third gender. Such measures would make people more comfortable, than having separate toilets for each gender," Hore said.