GST on Education Services

The Goods and Services Tax (GST) in India plays a crucial role in determining the taxation framework for various sectors, including education services. The government has aimed to keep core education services tax-free while levying GST on certain ancillary educational activities. Understanding the nuances of GST on education services in 2025 is essential for schools, colleges, training institutes, and online education providers.

This article provides detailed insights into GST applicability, exemptions, tax rates, and compliance for education services in India.

GST Applicability on Education Services

Education services are broadly categorized into exempt services (essential education) and taxable services (supplementary education services).

1. GST-Exempt Education Services

Under Notification No. 12/2017 – Central Tax (Rate), the following education services remain exempt from GST:

✔ Preschool, Primary & Secondary Education: Services provided by recognized schools, boards, and institutions affiliated with CBSE, ICSE, or state boards.

✔ Higher Education Institutions (Colleges & Universities): Government-recognized universities providing degree programs.

✔ Vocational Education & Skill Development: Government-approved skill development programs under NSDC (National Skill Development Corporation).

✔ Special Education for Disabled Students: Services offered by institutions catering to students with disabilities.

✔ Mid-Day Meal Schemes & Educational Trusts: Educational institutions providing government-funded meal programs and support services.

Example: A student enrolling in a CBSE-affiliated school does not pay GST on tuition fees.

2. Taxable Education Services Under GST

While core education remains GST-free, ancillary educational services and private coaching institutes attract GST.

Type of Education Service	GST Rate	HSN Code
Private Coaching Institutes & Tuitions	18%	999293
Online Education Platforms (EdTech)	18%	999293
Training & Certification Courses (Non-Government Recognized)	18%	999293
Computer Training Institutes	18%	998313
Renting of Premises for Educational Institutions	18%	997212
School Transportation (If Outsourced)	18%	996601
Sale of Course Materials & Stationery	5% or 18%	Various

✔ Private coaching centers, e-learning platforms, and training institutes must charge 18% GST.

✔ If a school provides transportation as part of its fee structure, it is GST-exempt, but outsourced transportation services attract GST.

GST on Online Education & EdTech Platforms

The rise of EdTech platforms has changed the landscape of education, making GST implications crucial for digital education providers.

✔ Live & Pre-recorded Courses: 18% GST applies.

✔ Subscription-Based Learning Apps: 18% GST on membership fees.

✔ Educational E-books & Digital Content: 5% GST (if classified as an e-book) or 18% (if classified as an online service).

✔ Foreign EdTech Companies Providing Services in India: Reverse charge mechanism applies if students pay for services from non-resident platforms.

✔ EdTech startups must ensure proper GST invoicing and compliance to avoid legal issues.

GST Registration for Educational Institutions & Training Centers

Institution Type	GST Registration Required?
Recognized Schools (CBSE, ICSE, State Boards)	❌ No (Exempt)
Government Universities	❌ No (Exempt)
Private Coaching Institutes	✅ Yes, if turnover > ₹20 lakh
Online Learning Platforms (EdTech)	✅ Yes, if turnover > ₹20 lakh
Vocational Training Centers (Govt. Recognized)	❌ No (Exempt)
Skill Development Centers (Non-Govt. Recognized)	✅ Yes

✔ Educational institutions providing taxable services must register for GST if turnover exceeds ₹20 lakh (₹10 lakh in special category states).

✔ Online education platforms must register for GST irrespective of turnover if they provide interstate services.

Input Tax Credit (ITC) for Education Service Providers

Scenario	ITC Eligibility
GST paid on books & stationery	❌ No (If for core education services)
GST paid on classroom infrastructure (desks, boards, projectors)	❌ No
GST paid on coaching institute advertisements	✅ Yes
GST paid on digital infrastructure for online courses	✅ Yes
GST paid on rent for a private coaching center	✅ Yes

✔ Exempt institutions (schools, colleges) cannot claim ITC.

✔ Private coaching centers and online learning platforms can claim ITC on business expenses.

Compliance & GST Invoicing in Education Sector

✔ GST-exempt institutions do not need to issue GST invoices.

✔ Private coaching centers, online learning platforms, and training institutes must issue GST-compliant invoices.

✔ GST returns (GSTR-1, GSTR-3B) must be filed regularly to avoid penalties.

Challenges in GST Compliance for Education Services

❌ Confusion between exempt and taxable services – Institutions need to classify services correctly.
❌ High GST on coaching and online learning – Increases the cost of education for students.
❌ ITC restrictions for core education providers – Schools and colleges cannot claim ITC, increasing operational costs.

✔ Proper GST structuring ensures tax compliance and minimizes costs.

Frequently Asked Questions (FAQs)

1. Are tuition fees in schools and colleges subject to GST?

No, tuition fees for recognized schools and universities are exempt from GST.

2. Does GST apply to private coaching institutes?

Yes, private coaching institutes and tuition centers must charge 18% GST.

3. Do EdTech platforms need to register under GST?

Yes, online education platforms must register and charge 18% GST.

4. Can schools claim GST input tax credit?

No, since schools provide exempt services, they cannot claim ITC.

5. What is the GST rate on digital education services?

Online education and subscription-based learning attract 18% GST.

Conclusion

Understanding GST on education services in 2025 is essential for schools, coaching institutes, and EdTech businesses. While core education remains tax-free, private coaching, online education, and ancillary services attract GST. Institutions must ensure proper classification, compliance, and invoicing to avoid penalties and legal issues.