GST on Educational Services 2025-26 — Exempt Institutions vs Taxable Coaching

No. Private coaching classes, tuition centres, and test preparation institutes (like coaching for IIT-JEE, NEET, UPSC, CA, MBA entrance) are NOT exempt from GST. The GST exemption under Entry 66 of Notification No. 12/2017-CT(Rate) applies only to services provided by an "educational institution" — defined as an institution providing education up to higher secondary level (Class 12), or a college, university, or institution of higher education recognised by the central or state government, or a vocational training institution. A private coaching institute or tuition centre is NOT an educational institution under this definition. Therefore, private coaching classes must charge 18% GST if their aggregate annual turnover exceeds ₹20 lakh (₹10 lakh in special category states). Students attending coaching classes pay 18% GST on fees. However, coaching institutes with turnover below the threshold are not required to register or collect GST.

No. Education services provided by IITs, NITs, central universities, state universities, deemed universities, and other institutions of higher education recognised by UGC, AICTE, MCI, Bar Council or other statutory bodies are EXEMPT from GST under Entry 66 of Notification No. 12/2017-CT(Rate). The exemption applies to services provided BY such institutions TO their students, faculty, and staff — including tuition fees, hostel fees (within the campus, up to ₹20,000/month), examination fees, library charges, and ancillary educational services. Services RECEIVED by educational institutions from third-party vendors (e.g., security services, catering contracted out, housekeeping) are generally subject to GST, and the institution cannot claim ITC since they provide exempt services. Note: Services of examination conducted by the educational institution itself — including Central Board of Secondary Education (CBSE) — are also exempt.

Online education platforms (Ed-tech companies) like Byju's, Unacademy, Vedantu, upGrad, and similar platforms that provide recorded or live online courses, digital learning content, or app-based education are subject to 18% GST if they are NOT recognised educational institutions under the CGST Act definition. The exemption for educational institutions applies only to recognised schools, colleges, and universities — not to private ed-tech companies. Therefore, ed-tech subscription fees, course fees, and content access charges all attract 18% GST. However, if an online course is provided by a recognised university or college as part of its accredited curriculum, such services may qualify for exemption. CBSE-affiliated schools delivering online education during the pandemic were exempt, but standalone ed-tech platforms remain taxable. GST authorities have issued notices to several ed-tech companies for non-compliance. Businesses purchasing ed-tech subscriptions for employee training can claim ITC.

Hostel accommodation provided by an educational institution (school, college, university campus) to its students is EXEMPT from GST, subject to the condition that the rent per student does not exceed ₹20,000 per month (as per Entry 14 of Notification No. 12/2017-CT(Rate), as amended). This exemption covers accommodation in hostels, dormitories, and residential facilities operated by or affiliated with recognised educational institutions. If the rent charged per student exceeds ₹20,000 per month, the entire accommodation service becomes taxable at 18% GST. Key points: (1) The exemption applies to student hostels, not faculty/staff accommodation (which is taxable). (2) Hostels run by private operators (not affiliated to any institution) are taxable regardless of per-bed charges — they do not qualify as educational institution accommodation. (3) Working professional hostels and PG accommodations are not covered under this exemption and attract 18% GST.

Vocational training services provided under schemes notified by the central government or state governments are generally EXEMPT from GST. Specifically, services provided under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and other National Skill Development Corporation (NSDC) affiliated training programmes are exempt from GST. The exemption under Entry 69 of Notification No. 12/2017-CT(Rate) covers services of assessing bodies empanelled centrally by the Directorate General of Training, Ministry of Skill Development and Entrepreneurship, and training partner institutes providing vocational skill training. However, not all skill training courses are exempt — only those under the specific notified schemes. Private vocational training institutes charging fees for courses not under notified government schemes must collect 18% GST if their turnover exceeds the threshold. ITI (Industrial Training Institute) courses at government ITIs are exempt; private ITIs not affiliated with government schemes may be taxable.