GST on Education — Schools Exempt, Coaching 18%, EdTech & Vocational
Complete GST guide for education sector: school/university (exempt), private coaching institutes (18%), EdTech platforms (18%), vocational training NSDC (exempt), hostel accommodation, CA/CS coaching, foreign university programs, study abroad consultancy, and the 'recognized qualification' test for exemption.
GST rates were revised in September 2025, and the rates on this page have not yet been checked by a tax professional against that revision. Confirm the current rate in the CBIC rate notifications before you invoice.
Exempt
School Education
Exempt
University Degrees
18%
Private Coaching
18%
EdTech Platforms
Exempt
Vocational (NSDC)
18%
Professional Coaching
Exempt
Research Grants
18%
Foreign University
Education — GST Framework
Pre-School to Higher Secondary — Exempt
All education from pre-school (nursery/KG) to higher secondary (Class 12) is EXEMPT from GST — regardless of whether the institution is government or private. This covers: tuition fees, school transport (owned by institution), library fees, lab fees, examination fees, sports fees, and annual charges. Key condition: institution must be registered with relevant education board (CBSE, ICSE, state board). International schools (IB, Cambridge): also exempt if providing education up to Class 12 level.
Higher Education (Degree) — Exempt
Education provided by colleges/universities leading to a QUALIFICATION RECOGNIZED by Indian law (UGC, AICTE, Medical Council, Bar Council, etc.) is exempt. Covers: B.Tech, MBBS, MBA (AICTE approved), BA, B.Com, M.Sc, PhD. The institution must be 'recognized' — either established by Central/State Act or affiliated to such university. Deemed universities: exempt if UGC recognized. Important: only the DEGREE program is exempt; ancillary commercial activities (canteen, transport, coaching) may attract GST.
Private Coaching & Tutoring — 18%
Private coaching institutes (not affiliated to a recognized institution providing qualifications) attract 18% GST. Examples: BYJU'S classes, Unacademy live batches, Allen/FIITJEE/Kota coaching for IIT-JEE/NEET (even though students will eventually get degrees — the coaching itself is taxable). CA/CS/CMA coaching: 18% (ICAI study material: exempt but coaching by private institutes: 18%). Spoken English, personality development, competitive exam coaching: all 18%.
EdTech & Online Learning — 18%
EdTech platforms providing online courses attract 18% GST: (1) BYJU'S, Unacademy, Vedantu, Physics Wallah: 18%. (2) Coursera, Udemy (foreign platform to Indian user): 18% IGST under OIDAR rules — platform must register in India. (3) Online degree programs from recognized universities: EXEMPT (the university's exemption extends to online delivery). (4) Skill-based courses (Skillshare, LinkedIn Learning): 18%. (5) YouTube courses (paid): 18%. Free content: no supply = no GST.
Vocational Training & Skill Development
Vocational education/training linked to NSDC (National Skill Development Corporation): EXEMPT — both government and private providers. Conditions: (1) Course must lead to certification recognized by NSDC/Sector Skill Council, (2) Provider must be an affiliated training partner. ITI (Industrial Training Institutes): exempt. Apprenticeship training: exempt. Polytechnic diploma: exempt (recognized qualification). However: unaffiliated skill programs (coding bootcamps, design courses) without NSDC recognition: 18%.
Hostel, Transport & Ancillary Services
Residential/hostel accommodation by educational institutions: Exempt up to ₹1,000/day per person (as amended in 47th Council). Above ₹1,000/day: 12% GST. School bus/transport operated by institution: exempt (part of education bundle). Third-party school bus operators: 18%. Canteen run by institution: exempt if outsourced to caterer below threshold. Uniforms sold by school: exempt (if mandatory, treated as composite supply). Books/stationery: 0% (books) or 12% (stationery). Playground/swimming (third-party): 18%.
Education — GST Rate Table
| Service/Item | SAC/HSN | GST Rate | Notes |
|---|---|---|---|
| School education (nursery–Class 12) | 9992 | Exempt | All recognized boards |
| University degree programs | 9992 | Exempt | UGC/AICTE recognized |
| Vocational training (NSDC) | 9992 | Exempt | Certified courses |
| Private coaching (IIT/NEET) | 9992 | 18% | Not a recognized institution |
| EdTech platforms (BYJU'S etc.) | 9992 | 18% | Online coaching |
| CA/CS/CMA coaching | 9992 | 18% | Private coaching institutes |
| Foreign university (in India) | 9992 | 18% | Not Indian law recognized |
| Hostel (≤₹1,000/day) | 9963 | Exempt | Per person per day |
| Hostel (>₹1,000/day) | 9963 | 12% | Commercial accommodation |
| Printed textbooks | 4901 | 0% | All books exempt |
| Research grants (funding) | — | Exempt | Not consideration for service |
| Sports coaching (private) | 9996 | 18% | Not part of school curriculum |
Frequently Asked Questions
Is GST applicable on school fees?
Why are coaching institutes taxed at 18% when they also provide education?
Does online education from a recognized university attract GST?
What about GST on study abroad consultancy and visa services?
Educational Institution Billing — Exempt & Taxable Auto-Split
Laabam.One auto-identifies exempt education services vs taxable ancillary services, handles coaching institute GST compliance, EdTech OIDAR obligations, and hostel threshold-based taxation.
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