Introduction to GST on Education Services in India
Education is a cornerstone for development, and India’s tax policy reflects this priority by granting significant GST exemptions to core educational services. Understanding GST on education services is essential for educational institutions, parents, students, and anyone involved in providing educational products or services. Since GST’s introduction, various clarifications and changes have defined precisely which education services are exempt, which attract tax, and how educational providers should ensure compliance.
In this comprehensive guide for 2025, we explore GST exemptions for core educational services, taxable education services, the GST status of ancillary goods and services, GST registration requirements, and essential compliance practices.
Exempt Core Educational Services under GST
Under Notifications 11/2017 and 12/2017 issued by the GST Council, certain educational services have been entirely exempted from GST. These exemptions aim to keep primary, secondary, and specified higher education affordable and accessible.
Pre-School to Higher Secondary Education
Education services provided by institutions up to higher secondary (12th grade) are fully GST-exempt. This includes pre-schools, primary schools, middle schools, and secondary education institutions, regardless of public or private ownership.
This exemption covers:
- Classroom teaching
- Transportation services provided to students by or for schools
- Catering and mid-day meals provided by government-sponsored schemes
- Security, housekeeping, and examination services provided to these institutions
Curriculum-Based Higher Education
Higher education courses that lead to recognized qualifications such as degrees or diplomas are also GST-exempt when provided by government-run, charitable, or legally recognized institutions. This exemption primarily includes regular colleges, universities, and professional institutions offering recognized qualifications.
Approved Vocational Education Courses
Vocational courses approved under the National Skill Development Corporation (NSDC) or other recognized bodies remain exempt from GST. This promotes vocational training and skill development aligned with government objectives.
Ancillary Services Provided by Educational Institutions
Ancillary services like transportation, catering, security, housekeeping, admissions, and examination services provided to students up to higher secondary level are fully exempted from GST.
Taxable Educational Services Under GST
While core education services enjoy GST exemption, certain categories are subject to GST at an 18% rate.
Private Coaching and Tuitions
Private coaching classes, tuition centers, and professional exam preparation services provided independently (not by recognized institutions or schools) attract GST at an 18% rate. This includes classes for entrance exams (JEE, NEET), CA coaching, and other professional qualification preparations.
Professional and Vocational Training (Non-approved)
Vocational or professional training not recognized or approved by government agencies or statutory bodies attract GST at 18%. This includes unregulated vocational training courses and professional training programs by private entities.
E-learning and Distance Education
Online education or distance learning programs offered by private entities are subject to GST at an 18% rate. However, recognized institutions delivering online courses approved by educational regulators remain exempt.
GST on Ancillary Educational Goods & Services
Ancillary goods and services, while partly exempt, often attract GST depending on their nature and association with education delivery.
Transportation & Catering
Transportation services offered by educational institutions up to higher secondary levels remain GST-exempt. Government-sponsored catering services (mid-day meal schemes) also remain exempt. However, privately managed catering or transportation outside the institutional purview can attract GST at applicable rates (typically 18%).
Security, Cleaning, and Examination Services
Security, housekeeping, cleaning, and examination-related services provided by or to educational institutions up to higher secondary education remain GST-exempt, provided they are directly connected with education.
Books, Stationery, Uniforms, and Supplies
Educational books are generally GST-exempt or taxed at minimal rates (5–12%). Stationery items, uniforms, sports equipment, and other extra-curricular materials usually attract GST at standard rates of 5% to 18%.
Non-curricular Activities (Yoga, Fitness, Labs)
Non-curricular activities such as yoga classes, fitness programs, or laboratories not directly linked to an accredited educational curriculum attract GST at an 18% rate.
GST Registration Requirements for Educational Institutions
The GST law clearly defines when an educational institution must register for GST, depending on the services it provides.
When GST Registration is Not Required
Institutions providing exclusively exempt educational services (schools up to higher secondary, government-recognized degree/diploma courses, approved vocational courses) are not required to register under GST.
Mandatory GST Registration Conditions
Educational institutions must register for GST if they provide taxable goods or services, such as:
- Private coaching, training, or professional exam preparation
- E-learning or distance education by private entities
- Selling taxable goods like uniforms, stationery, or sports equipment
In these cases, registration becomes mandatory once annual turnover exceeds ₹20 lakh (₹40 lakh for goods).
Practical Compliance Tips for Educational Institutions
GST compliance in education services can be straightforward by adopting these best practices:
Accurate Invoicing and Billing Practices
- Clearly distinguish exempt and taxable services/products in invoices.
- Maintain separate invoicing for taxable items to avoid confusion during audits.
Input Tax Credit (ITC) Rules and Best Practices
- Institutions providing exempt services cannot claim ITC on related inputs.
- ITC can be claimed for inputs directly used for taxable services or products. Clearly segregate ITC claims between exempt and taxable outputs to ensure compliance.
Utilizing Correct SAC/HSN Codes
- Use appropriate Service Accounting Codes (SAC) like 9992 for education services.
- Apply accurate Harmonized System of Nomenclature (HSN) codes for taxable goods like stationery, uniforms, and sports items.
Summary Table: GST Rates on Educational Services (2025)
| Service Type | GST Status | GST Rate |
|---|---|---|
| School education (up to higher secondary) | Exempt | – |
| Curriculum-based higher education | Exempt/compliant | – |
| Private coaching/vocational training | Taxable | 18% |
| E-learning & distance education | Taxable | 18% |
| Ancillary services (books, materials) | Varies | 5–18% |
| Extra activities (yoga, fitness, labs) | Taxable | 18% |
FAQs on GST on Education Services in India
Is school education subject to GST?
No, education up to higher secondary provided by recognized institutions remains GST-exempt.
Do private coaching classes attract GST?
Yes, private coaching or tuition services attract an 18% GST rate.
Are educational books GST-free?
Most educational books are GST-exempt or taxed minimally (5–12%), based on the type of publication.
When do educational institutions need GST registration?
Educational institutions require GST registration if they supply taxable goods/services and cross the GST turnover threshold (₹20 lakh for services, ₹40 lakh for goods).
Is GST applicable on online education?
Online education provided by private, non-recognized entities attracts GST at 18%, while recognized institutions offering accredited online courses remain exempt.
What GST rate applies to extracurricular activities?
Extra-curricular activities like yoga, fitness, or non-curricular labs are taxed at 18%.
Conclusion: Streamlining GST Compliance in Education
Navigating GST in education services requires clear understanding of exemptions, taxable activities, and compliance requirements. Educational institutions must stay updated, maintain accurate billing, segregate taxable and exempt services, and ensure proper registration where required. Doing so ensures seamless compliance, keeps education affordable, and avoids potential audits and penalties, fostering a robust educational environment aligned with India’s educational goals.
