The Goods and Services Tax (GST) has significantly reshaped the education sector in India since its introduction in 2017. While core educational services remain largely exempt, supplementary services and educational materials are subject to varying GST rates. This framework was further refined under GST 2.0 in September 2025, which simplified tax slabs and introduced targeted relief for select educational materials.
Understanding the impact of GST on education in India is essential for making informed financial and administrative decisions. This article outlines the latest GST rules on education in India, including applicable rates, exemptions, and their impact across different education levels and stakeholders.
Key Takeaways
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Core education is exempt from GST at 0% for preschool to higher secondary and accredited degree programs.
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Non-accredited online platforms and competitive exam tutoring are subject to 18% GST.
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The GST on pencils, notebooks, and exercise books has decreased from 12% to 0–5%.
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While coaching centres can use ITC, schools cannot claim input tax credits for exempt services.
What is GST on Education Services?
GST on education services is the application of the GST on services provided by educational institutions and education-related vendors. However, the scope extends beyond tuition fees to include coaching centres, online learning platforms, test services, vocational training, and the sale of educational materials. The underlying premise of GST on education is to make formal education accessible by exempting essential services while charging for commercial, market-driven education products.
Under the CGST Act, 2017, an “educational institution” is defined as one that provides:
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Pre-school education
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Education up to the higher secondary level
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Recognised degree programs, or
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Approved vocational courses.
Only institutions meeting these criteria are eligible for GST exemptions. Coaching centres and unrecognised training providers cannot claim these benefits, even if they operate in the education space.
Education services are classified under SAC Code 9992 and include school education, higher education, vocational training, and other educational support services. GST is applicable to both the institution and the service delivered.
Tuition costs for schools (up to Class 12), recognised degree programs, authorised vocational courses, examinations, student transportation, mid-day meals, and some support services are excluded from GST. Private coaching sessions, unrecognised online courses, professional training programs, and education consulting services, on the other hand, are subject to an 18% GST.
Also Read, What is GST and Types of GST?
GST on Different Education Fees
School Fees (Pre-school to Class 12) - Tuition fees charged by recognised institutions from pre-school to Class 12 are completely free from GST. This applies to all schools, whether government, private, or foreign, across all boards. Transportation and midday meals are likewise excluded when supplied by the school, ensuring that families may continue to receive a tax-free education.
College and University Fees - Degree programs at recognised colleges and universities that lead to legally required credentials are likewise GST-exempt. Non-degree options, such as executive programs, certificate courses, and short-term professional training, often charge 18% GST.
Coaching Centers and Private Tuition - Private coaching centres and examination preparation institutes are subject to 18% GST, which dramatically raises student costs. Individual tutors are also held accountable if their turnover exceeds the authorised amount. This increased tax burden raises the cost of additional education, making it less affordable to many families.
Note: When books are bundled with coaching services as a composite supply, then 18% GST applies to the ENTIRE package, including the books.
Here’s a table providing GST on Different Education Fees at a glance:
|
Fee Type |
GST Rate (Post-GST 2.0) |
Examples |
|
School Tuition (Pre-school to Class 12) |
0% |
CBSE/ICSE fees, annual charges |
|
College Degree Programs |
0% |
B.Tech., MBA from recognised universities |
|
Executive/Professional Courses |
18% |
Short certifications, non-degree training |
|
Coaching (NEET/JEE/UPSC) |
18% |
Private centers, individual tutors >₹20L turnover |
|
Examination/Admission Fees |
0% |
By recognised institutions only |
Note: Post-September 2025, bundled school fees remain untaxed if education dominates; separate coaching charges are taxed at 18% regardless of provider scale.
GST on Educational Books & Uniforms
Books and Printed Educational Materials
GST on educational books are as follows:
|
Type |
GST |
|
School textbooks |
0% (reduced FROM 5%) |
|
College textbooks |
5% (reduced FROM 12%) |
|
Printed books (general): |
EXEMPT (0%) |
|
Exercise/graph/lab books |
0% |
Note: While books themselves are exempt, the raw paper used to manufacture textbooks now faces 18% GST. This indirectly increases institutional printing costs.
Stationery Items: Relief Under GST 2.0
|
Item |
Old Rate (Pre-GST 2.0) |
New Rate (Post-GST 2.0) |
|
Notebooks & exercise books |
12% |
0% (Exempt) |
|
Pencils & crayons |
12% |
0% (Exempt) |
|
Erasers |
18% |
0% (Exempt) |
|
Drawing charcoal & chalk |
12% |
0% (Exempt) |
|
Mathematical/geometry/colour boxes |
12% |
5% |
|
Stationery pouches & wallets |
12% |
5% |
|
Ballpoint & fountain pens |
18% |
18% (Unchanged) |
|
Highlighters & markers |
18% |
18% (Unchanged) |
School Uniforms
GST on school uniform includes the following:
|
Price per Piece |
GST Rate |
|
Up to ₹2,500 |
5% |
|
Above ₹2,500 |
18% |
Note: School uniforms follow the general apparel classification, not a school-specific rule.
Impact of GST on the Education Sector
GST has had a wide-ranging impact on the educational environment, including:
Impact on Educational Institutions
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Schools (Exempt services): While school education is GST-exempt, schools are unable to claim Input Tax Credit (ITC) on inputs such as utilities, maintenance, and stationery, resulting in higher running expenses that are frequently passed on to parents.
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Colleges and universities (Mixed services): Institutions that provide both exempt degree programs and taxable professional courses must keep separate accounting records, which adds to compliance complexity.
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Coaching centres (taxed services): Coaching centres are fully taxable at 18%, and they can claim ITC; nonetheless, the higher output tax boosts student fees.
Impact on Families and Students
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Positives: Zero GST on school tuition, decreased GST on stationery under GST 2.0, and exemptions for transport and meals all assist in keeping basic education expenditures under control.
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Negatives: The 18% GST on coaching and online education raises costs while widening the divide between official education and supplementary learning.
Compliance Burden
Institutions must ensure accurate categorisation, keep precise records, file frequent returns, and manage audit risks. These pose challenges that are especially difficult for smaller institutions with fewer administrative resources.
GST Exemptions and Benefits for Education
Here’s a comprehensive list of exempted services:
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Services offered by educational institutions (exempt):
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All tuition and educational services from pre-school to higher secondary education
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Degree and diploma programs lead to recognised credentials.
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Educational institutions perform examination and admission services.
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Vocational education at NSDC-approved institutes and ITIs.
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Schools provide student travel directly. (Exemption may not apply if third-party operators collect fees from parents independently.)
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Schools give midday meals.
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Educational institutions provide hostel lodging for their students.
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Educational support services (cleaning, security, and housekeeping) for schools up to the secondary level.
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Services Provided to Educational Institutions (Exempt, confined to schools through upper secondary):
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Transportation for students, educators, and staff
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Catering and midday meal services.
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Security, cleaning, and housekeeping services.
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Admission and examination services.
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Specialised exemptions:
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All services provided by government schools.
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Educational services supplied by NGOs registered under Section 12AA of the Income Tax Act are completely exempt.
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NSDC-approved skill development courses.
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Two-year management programs and fellow programs at the Indian Institutes of Management.
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Educational boards and councils provide affiliation services to government schools (exemption effective October 2024).
Input Tax Credit (ITC) Eligibility
The availability of ITCs has a significant impact on educational institutions' net tax burden.
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Who Can Claim ITC
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Institutions that offer taxable educational services (coaching centres, online education platforms) can claim ITC on all business inputs.
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Institutions that offer both exempt and taxable services can claim ITC proportionally for the taxable share.
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Who Cannot Claim ITC?
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Schools and universities that offer totally exempt services cannot claim any ITC, which dramatically increases their net tax burden on operating expenditures.
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NGOs that offer exempt charity educational services cannot claim ITC.
Challenges of GST in the Education Sector
GST on educational services has also posed certain challenges, including:
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Service Classification Ambiguity - Educational institutions commonly offer bundled services that blur the lines between exempt and taxable categories.
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Mixed Services and Input Tax Complexity - Input Tax Credit (ITC) must be allocated pro rata by institutions that provide both taxable and exempt services. This demands sophisticated accounting systems, which many schools, particularly those in rural and semi-urban regions, may lack. Thus, institutions frequently have to pay more for compliance.
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ITC Unavailability for Exempt Services - Schools that provide totally exempt services are not eligible for ITC, but they are required to pay GST on inputs such as books, equipment, and utilities. Compared to taxable coaching centres that may offset GST, this puts them at a disadvantage and raises their costs.
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Compliance and Audit Risk - Increased GST audits put institutions at risk due to a lack of tax knowledge, such as:
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Penalties for inappropriate tax treatment due to misclassification.
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ITC denial because of inadequate documentation.
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Legal expenses resulting from disputes about interpretation.
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Equity and Access Implications - The 18% GST on coaching and online education boosts expenses for low-income students, restricting their access to quality supplemental education. This has a disproportionate impact on exam results and worsens success inequalities since only wealthy families can afford such services.
Conclusion
The GST on education in India framework seeks to strike a balance between accessibility and acceptance of education as an organised sector. Core services like school and college tuition remain free from tax burden, ensuring affordability, while GST 2.0 decreased the tax on educational stationery to 0-5%, lowering family costs.
However, the 18% GST on education services like private coaching and online education restricts access for low-income students, raising inequality. Exempt institutions additionally suffer greater expenses since they are unable to claim the ITC, and smaller institutions have more stringent regulatory requirements.
