Education Exemption: Entry 66, Services By and To an Institution

Education Exemption explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Entry 66 is asymmetric by design. Outbound, it exempts everything. Inbound, it exempts five named services — and three of those only for schools. Almost every education dispute lives in that asymmetry.

Entry 66(a) exempts services by an educational institution to its students, faculty and staff — with no restriction on the nature of the service. 66(aa) exempts conduct of an entrance examination against an entrance fee. 66(b) exempts five services to an institution: transportation, catering including mid-day meals, security, cleaning or house-keeping performed in the institution, services relating to admission or conduct of examination, and supply of online educational journals or periodicals. The first proviso confines the first three to institutions providing pre-school and up to higher secondary education; the second proviso confines online journals to institutions other than schools and approved vocational courses.

What an "educational institution" is

Para 2(y) — an institution providing services by way of:

• (i) pre-school education and education up to higher secondary school or equivalent;
• (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
• (iii) education as a part of an approved vocational education course.

Para 2(h) — "approved vocational education course" means a course run by an ITI or industrial training centre affiliated to the NCVET or a State Council for Vocational Training offering courses in designated trades notified under the Apprentices Act, 1961, or a Modular Employable Skill Course approved by the NCVET run by a person registered with the Directorate General of Training, Ministry of Skill Development and Entrepreneurship.

Limb (ii) carries the most weight, and the Handbook explains it precisely:

"only such educational services are in the exemption list as are related to delivery of education as 'a part' of the curriculum that has been prescribed for obtaining a qualification prescribed by law… Conduct of degree courses by colleges, universities or institutions which lead to the grant of qualifications recognized by law would be covered. Training given by private coaching institutes would not be covered as such training does not lead to grant of a recognized qualification."

That single sentence decides the coaching industry. A coaching institute prepares students for someone else's qualification; it does not grant one.

Outbound: everything

"It is pertinent to note that the entry does not specify the nature of services provided by an educational institution. Thus, all the services provided by an educational institution to its students, faculty and staff are exempt under GST."

The Handbook's example makes the width visible: "Modern School has charged ₹2,000 per student for a summer tour organized by the school. Such services are exempt."

A summer tour is not education. It is exempt because the entry asks only who supplies and to whom, not what.

Inbound: five services, two provisos

The Handbook's example of the first proviso biting: "Transportation services provided to a college for transportation of its students. Such services are taxable because such services are exempt only when provided to schools."

And the second proviso is a mirror image — online journals are exempt only for degree-granting institutions, and not for schools or vocational courses.

Entrance examinations, and the 2023 explanation

Circular No. 151/07/2021-GST dated 17.06.2021 clarified that the National Board of Examination is an educational institution "in so far as it provides services by way of conduct of examination, including any entrance examination, to the students. Therefore, GST shall not apply to any fee or any amount charged by such Boards for conduct of such examinations including entrance examinations."

And it extends to their inputs: "GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notification for examination, admit card and questions papers etc., when provided to such Boards."

But not to accreditation: "GST @ 18% applies to other services provided by such Boards, namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test)."

Notification No. 01/2023-Central Tax (Rate) dated 28.02.2023 then inserted a general explanation: "Any authority, board, or body set up by the Central Government or State Government, including the National Testing Agency, for the conduct of entrance examinations for admission to educational institutions, shall be treated as an educational institution for the limited purpose of providing services by way of conducting entrance examinations."

Read "for the limited purpose" strictly. The NTA is an educational institution for entrance examinations only — not for anything else it does.

Food and hostels

Food. Per Circular No. 28/02/2018-GST dated 08.01.2018 (as corrected 18.01.2018): catering "provided by an educational institution to its students, faculty and staff" is exempt under entry 66(a). "If the catering services, i.e., supply of food or drink in a mess or canteen, is provided by anyone other than the educational institution, then it is a supply of service at entry 7(i) of Notification No. 11/2017-CT(R)… and attracts GST of 5% provided that credit of input tax charged… has not been taken, effective from 15-Nov-2017."

And per a Press Release dated 11.04.2018: "GST rate on supply of food and drinks in a mess or canteen in an educational institution attracts GST at 5% without ITC", while "if schools up to higher secondary level supply food directly to students, then the same are exempt."

Hostels. Per the Press Release dated 13.07.2017: "services of lodging/boarding in hostels provided by such educational institutions which are providing pre-school education and education up to higher secondary school or equivalent or education leading to a qualification recognised by law, are fully exempt. Annual subscription / fees charged as lodging/boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST."

Boarding schools are treated as a composite supply where the charges are inseparable, with education as the principal supply, so "the entire consideration for the supply will be exempt." Composite and mixed supplies →

Two more that turn on the definition

DGCA flying training. Circular No. 234/28/2024-GST dated 11.10.2024 clarified that "the approved flying training courses conducted by FTOs approved by DGCA wherein the DGCA mandates the requirement of a completion certificate, are covered under Sl. No. 66… and are hence, exempt." The completion certificate is what makes it a qualification recognised by law.

Affiliation. Affiliation services by educational boards and councils attract GST at 18% — "affiliation services provided by the universities to colleges are not by way of services related to the admission of students to such colleges or the conduct of examinations by such colleges", per Circular No. 234/28/2024. Entry 66A exempts affiliation only to Government schools, from 10.10.2024 by Notification No. 08/2024-CT(R).

And entry 67 is gone. The exemption for IIM programmes — two-year PGP admitted through CAT, fellow programme and five-year integrated programme, excluding Executive Development Programme — was "withdrawn by Notification No. 28/2018-CT(R), dated 31-Dec-2018, w.e.f. 1-Jan-2019."

Key takeaways

• Entry 66(a) exempts everything an educational institution supplies to its students, faculty and staff — including a summer tour.
• "Educational institution" has three limbs; limb (ii) requires education as part of a curriculum for a qualification recognised by law.
• Coaching institutes are outside it — their training leads to no recognised qualification.
• Inbound, only five services are exempt, and transportation, catering and security/cleaning only for schools.
• Online journals are exempt only for degree-granting institutions.
• Entrance examination fees and their input services are exempt; accreditation fees are taxable at 18% — Circular No. 151/07/2021.
• Notification No. 01/2023-CT(R) treats entrance-exam bodies including the NTA as educational institutions for that limited purpose.
• Outsourced mess catering is 5% without ITC; schools supplying food directly to students are exempt.
• Hostel and boarding charges by qualifying institutions are exempt, boarding schools being a composite supply.
• DGCA-approved flying training is exempt; affiliation is taxable at 18% except to Government schools since 10.10.2024; entry 67 for IIMs was withdrawn from 01.01.2019.

Read next

• Skill Development Exemptions: Entries 69, 70 and 71
• An Exempt Supply Inside a Composite or Mixed Supply
• Exemptions on Supplies Made to Government, Entry by Entry

Disclaimer: Positions stated as on 5 September 2026, based on entries 66, 66A and 67 and paras 2(y) and 2(h) of Notification No. 12/2017-Central Tax (Rate), Notification Nos. 28/2018, 01/2023 and 08/2024-Central Tax (Rate), entry 7(i) of Notification No. 11/2017-Central Tax (Rate), and Circulars No. 28/02/2018-GST, 151/07/2021-GST and 234/28/2024-GST with the CBIC press releases of 13 July 2017 and 11 April 2018, as reproduced in the ICAI Handbook on Exempted Supplies under GST (April 2025).