Education SectorSchools & EdTech

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.

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/ItemSAC/HSNGST RateNotes
School education (nursery–Class 12)9992ExemptAll recognized boards
University degree programs9992ExemptUGC/AICTE recognized
Vocational training (NSDC)9992ExemptCertified courses
Private coaching (IIT/NEET)999218%Not a recognized institution
EdTech platforms (BYJU'S etc.)999218%Online coaching
CA/CS/CMA coaching999218%Private coaching institutes
Foreign university (in India)999218%Not Indian law recognized
Hostel (≤₹1,000/day)9963ExemptPer person per day
Hostel (>₹1,000/day)996312%Commercial accommodation
Printed textbooks49010%All books exempt
Research grants (funding)—ExemptNot consideration for service
Sports coaching (private)999618%Not part of school curriculum

Frequently Asked Questions

Is GST applicable on school fees?
No — school fees (nursery to Class 12) are completely EXEMPT from GST. This covers: tuition fees, admission fees, library charges, lab charges, development fees, exam fees, sports fees, and all charges that are part of the educational service. Conditions: (1) Institution must be providing education as part of a curriculum up to higher secondary, (2) Must be registered with a recognized board (CBSE, ICSE, state boards, IB — as long as it's recognized in India). Even expensive international schools charging ₹20+ lakh/year are exempt — the rate of fee doesn't matter, only the nature of service.
Why are coaching institutes taxed at 18% when they also provide education?
The GST exemption is specifically for 'education as a part of a curriculum for obtaining a qualification recognised by any law.' Coaching institutes (Allen, FIITJEE, BYJU'S) do NOT grant qualifications — they prepare students FOR examinations conducted by OTHER bodies (IIT, AIIMS, UPSC). The coaching itself is not leading to a 'recognised qualification.' Similarly, CA coaching by a private institute is taxable at 18%, but the ICAI's own study material is exempt (because ICAI is the statutory body granting the qualification). It's about WHO provides the qualification, not WHAT is taught.
Does online education from a recognized university attract GST?
No — if a recognized university offers degree programs online (distance/online mode), the education is EXEMPT. The exemption applies to the institution, not the delivery method. Examples: (1) IGNOU online courses leading to degree: exempt. (2) IIM's online MBA (AICTE approved): exempt. (3) Amity Online (UGC approved): exempt. BUT: (4) Coursera certificate (not Indian qualification): 18%. (5) Unacademy subscription: 18% (not a degree). (6) MIT OpenCourseWare paid certificate: 18% IGST. The key test: does it lead to a qualification recognized by Indian law (UGC/AICTE/Medical Council etc.)?
What about GST on study abroad consultancy and visa services?
Study abroad consultancy: 18% GST (it's a service, not education). Visa processing assistance: 18%. University application services: 18%. SAT/GRE/TOEFL coaching: 18% (preparation for foreign exams). Document attestation: 18%. Education loan processing: 18% on processing fee (interest exempt). However: if an Indian university sends students abroad as part of a recognized program (student exchange under MoU): the educational component remains exempt. Travel and accommodation: 18%/12% depending on service. Scholarship disbursement: not a supply — no GST.

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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