Quick Answer
Education is not blanket-exempt. Services provided by a recognised "educational institution" — schools up to Class 12, and colleges/universities recognised by law — are exempt (Nil) under Entry 66 of Notification 12/2017-CT(R). Private coaching, tuition centres, ed-tech platforms and non-accredited online courses attract 18% GST once turnover crosses ₹20 lakh. Hostel accommodation up to ₹20,000 per student per month is exempt.
Recognised school/college Nil
Coaching / ed-tech 18%
Hostel ≤ ₹20K/mo Nil
Vocational (PMKVY/NSDC) Nil
At a glance
GST on Education — Decision Table
The GST status for every common education scenario in India, with the legal reference.
| Service / Institution | GST | Rate | Reference |
|---|---|---|---|
| School (KG–Class 12), govt-recognised | Exempt | Nil | Entry 66, Notif 12/2017 |
| College / University (UGC / AICTE / MCI) | Exempt | Nil | Entry 66, Notif 12/2017 |
| IIT / NIT / IIM / AIIMS | Exempt | Nil | Entry 66, Notif 12/2017 |
| Board exams (CBSE, state boards) | Exempt | Nil | Entry 66, Notif 12/2017 |
| Mid-day meal / catering to schools | Exempt | Nil | Entry 66, Notif 12/2017 |
| Hostel on campus (≤ ₹20K/student/mo) | Exempt | Nil | Composite supply, Entry 66 |
| Vocational training (PMKVY / NSDC) | Exempt | Nil | Entry 69, Notif 12/2017 |
| Private coaching (JEE / NEET / UPSC) | Taxable | 18% | Not an educational institution |
| Ed-tech platforms & apps | Taxable | 18% | SAC 9992 · not recognised |
| Online courses (non-accredited) | Taxable | 18% | SAC 9992 |
| Foreign online course to Indian student | Taxable | 18% | OIDAR / RCM |
| Hostel above ₹20K/student/mo | Taxable | 18% | Exceeds exemption cap |
GST 2.0 (eff 22 September 2025) restructured slabs but did NOT change the education exemptions — coaching & ed-tech were already at 18%. Confirm on the official GST portal before invoicing.
The core distinction
What Counts as an "Educational Institution"?
One test decides exemption: is the provider an "educational institution" as defined in the Explanation to Entry 66 — education up to higher secondary, or a college/university recognised by a law in force, or a notified vocational course. If yes, it is exempt; if not, it is taxable at 18%.
Nil
Exempt — recognised institutions
- Schools up to Class 12 recognised by govt
- Colleges & universities recognised by law
- IITs, NITs, IIMs, deemed universities
- Board / entrance exams they conduct
- Tuition, admission, exam, hostel & transport fees they charge
vs
18%
Taxable — everything else
- Private coaching & tuition centres
- Test-prep (JEE / NEET / UPSC / CA)
- Ed-tech platforms & app subscriptions
- Non-accredited online courses
- Skill courses outside notified schemes
Exempt output = no ITC
A recognised institution supplies exempt education, so it cannot claim Input Tax Credit on GST paid to third-party vendors (outsourced security, housekeeping, printing, software). That input GST becomes an embedded cost. Only taxable coaching/ed-tech at 18% can claim ITC on their inputs.
Not sure whether your institute is exempt or taxable?
Get My GST Position →High-intent · commercial coaching
GST on Coaching Classes & Ed-Tech
Private coaching institutes, tuition centres and ed-tech companies are not "educational institutions" under GST. They supply commercial training (SAC 9992) and must charge 18% GST once aggregate turnover crosses the registration threshold.
StudentPays course / subscription fee
→
Coaching / Ed-TechCharges 18% GST on the fee
→
GST @ 18%Collected & deposited to govt
→
ITCInstitute can claim ITC on inputs
- Coaching for JEE, NEET, UPSC, CA, banking, MBA entrance — 18% GST on fees.
- Ed-tech subscriptions and recorded/live online courses — 18% GST; the exemption does not extend to app-based learning companies.
- A course delivered by a recognised university as part of its accredited curriculum can still be exempt.
- Businesses buying ed-tech subscriptions for employee training can claim ITC on the 18% charged.
Worked example
How GST Adds Up — ₹50,000 Coaching Fee
Nil Recognised college fee
Tuition fee₹50,000
GST @ Nil₹0
Student pays₹50,000
18% Private coaching fee
Course fee₹50,000
GST @ 18%₹9,000
Student pays₹59,000
Running a coaching centre or ed-tech platform? Get registration & monthly filing handled.
Get Coaching GST Help →Common queries
Hostel, Vocational & Vendor Services
Beyond core tuition, three areas cause the most confusion — hostel rent, skill/vocational courses, and services an institution buys from outside vendors.
| Scenario | GST | ITC | Notes |
|---|---|---|---|
| Campus hostel ≤ ₹20,000/student/month | Nil | — | Part of composite exempt supply |
| Campus hostel > ₹20,000/student/month | 18% | Yes | Whole accommodation taxable |
| Private PG / working-professional hostel | 18% | Yes | Not an institution — no exemption |
| Vocational under PMKVY / NSDC scheme | Nil | — | Entry 69 notified courses |
| Private skill course outside notified scheme | 18% | Yes | Commercial training |
| Security / housekeeping bought by school | 18% | No | Institution provides exempt output |
Faculty / staff accommodation is taxable even on campus; only student hostels within the cap are exempt.
Likely EXEMPT if
- You are a govt-recognised school up to Class 12
- You are a college / university recognised by law
- You run a PMKVY / NSDC-notified vocational course
- Hostel rent stays within ₹20,000/student/month
Likely 18% if
- You run private coaching or tuition
- You are an ed-tech / online-course platform
- You sell non-accredited certification courses
- Your hostel / PG is not attached to an institution
Institution buying vendor services and unsure about ITC blockage?
Talk to a GST Expert →Stay compliant
Education GST Compliance Checklist
Registration is mandatory for a taxable education provider once aggregate turnover crosses ₹20 lakh (₹10 lakh for special-category states). Purely-exempt institutions generally need not register, but must handle RCM where applicable.
- Correct exempt vs taxable classification
- GST registration if turnover > ₹20L
- Tax invoice / bill of supply
- SAC 9992 on taxable fees
- GSTR-1 (outward supplies)
- GSTR-3B (monthly / quarterly)
- RCM on imported / OIDAR services
- ITC reconciliation (taxable providers)
- No ITC claim on exempt outputs
- E-invoicing applicability
- GSTR-9 annual return
- Books & records upkeep
TaxClue Insight
The word "education" carries no automatic exemption — the exemption attaches to a recognised institution, not to the activity. GST authorities have issued notices to coaching centres and ed-tech firms for treating themselves as exempt. Getting classification right up front avoids demand notices with interest and penalty.
Government sourcesExemption & notifications: gst.gov.in · CBIC rate finder: cbic-gst.gov.in · Core exemption: Entry 66, Notification 12/2017-CT(R) · Vocational training: Entry 69, Notification 12/2017-CT(R)
People also ask
Frequently Asked Questions
Exempt or Taxable
Are educational services exempt from GST?
Not automatically. Only services provided by a recognised "educational institution" — a school providing education up to Class 12, or a college/university recognised by a law in force — are exempt under Entry 66 of Notification 12/2017-CT(Rate). Private coaching, ed-tech platforms and non-accredited courses are not educational institutions and attract 18% GST. The exemption attaches to the recognised institution, not to the word "education".
What is the GST rate on education services?
There is no single rate. Recognised schools, colleges and universities pay Nil GST on the education they provide. Everything commercial — private coaching, tuition centres, ed-tech, online courses and skill courses outside notified schemes — attracts 18% GST under SAC 9992. Hostel accommodation up to ₹20,000 per student per month is exempt; above that it is taxable at 18%.
Did GST 2.0 change GST on educational services?
No. The GST 2.0 rationalisation effective 22 September 2025 restructured goods and services into a two-slab system but did not change education. The exemption for recognised institutions under Entry 66 continues, and commercial coaching and ed-tech remain at 18% — they were already taxed at 18% before the reform, so removing the 12% slab had no impact on them.
What does "educational institution" mean under GST?
Per the Explanation to Entry 66, an educational institution provides services by way of (1) pre-school to higher secondary (up to Class 12) education, (2) education as part of a curriculum for a qualification recognised by any law in force, or (3) an approved vocational education course. Institutions meeting this definition are exempt; private coaching and ed-tech companies do not meet it and are taxable.
Coaching & Ed-Tech
Are private coaching classes exempt from GST?
No. Private coaching classes, tuition centres and test-prep institutes (IIT-JEE, NEET, UPSC, CA, MBA entrance) are not "educational institutions" under GST. They must charge 18% GST on fees once aggregate annual turnover exceeds ₹20 lakh (₹10 lakh in special-category states). Coaching institutes below the threshold need not register or collect GST.
Is GST applicable on ed-tech platforms like Byju's, Unacademy or upGrad?
Yes. Ed-tech platforms providing recorded or live online courses, digital content or app-based learning are taxable at 18% GST because they are not recognised educational institutions. Subscription fees, course fees and content-access charges all attract 18%. Only where a course is delivered by a recognised university as part of its accredited curriculum can it qualify for exemption.
What is the GST on online courses in India?
Non-accredited online courses sold by private providers attract 18% GST under SAC 9992. This includes self-paced video courses, live cohorts and certification programmes from companies that are not recognised institutions. Online education delivered by a recognised university/college as part of its accredited programme can be exempt.
Can a coaching institute claim ITC on its inputs?
Yes. Because coaching and ed-tech are taxable at 18%, they can claim Input Tax Credit on GST paid on rent, software, marketing, equipment and other business inputs, subject to normal ITC rules. This is the opposite of recognised institutions, whose exempt output blocks ITC on their purchases.
Hostel & Vocational
Is hostel accommodation in educational institutions exempt from GST?
Yes, subject to a cap. Hostel accommodation provided by an educational institution to its own students is exempt as part of the composite supply of education, provided the rent does not exceed ₹20,000 per student per month. If the rent exceeds ₹20,000 per month, the entire accommodation service becomes taxable at 18%. Faculty/staff accommodation is taxable even on campus.
Is GST applicable on private PG and working-professional hostels?
Yes. Hostels and PG accommodation run by private operators not affiliated to a recognised institution do not qualify for the education exemption and are taxable at 18% GST (subject to the registration threshold). The ₹20,000/month exemption applies only to student hostels operated by or affiliated with recognised educational institutions.
Are vocational training and skill courses exempt from GST?
Only notified ones. Services under schemes notified by the central/state government — such as PMKVY and NSDC-affiliated programmes — are exempt under Entry 69 of Notification 12/2017-CT(Rate). Private vocational institutes running courses outside these notified schemes must charge 18% GST if turnover crosses the threshold. Government ITI courses are exempt; unaffiliated private ITIs may be taxable.
Are mid-day meal and catering services to schools taxable?
Catering under the government mid-day meal scheme, and services provided to a school up to higher secondary in relation to admission or examination, are exempt. However, when a school outsources catering, security or housekeeping to a third-party vendor, that vendor charges 18% GST to the school, and the school cannot claim ITC because its own output is exempt.
Institutions & ITC
Can a recognised school or college claim ITC on vendor services?
No. Recognised institutions supply exempt education, so GST paid to outside vendors — outsourced security, housekeeping, printing, software subscriptions — cannot be claimed as Input Tax Credit. That input GST becomes an embedded cost. ITC is available only to taxable providers such as coaching centres and ed-tech firms.
Is GST applicable on IIT, NIT and deemed university fees?
No. Education provided by IITs, NITs, central/state universities, deemed universities and other institutions of higher education recognised by UGC, AICTE, MCI, Bar Council or other statutory bodies is exempt under Entry 66. This covers tuition, examination, library and hostel fees (within the ₹20,000/month cap) charged by the institution to its students, faculty and staff.
When must an education provider register for GST?
A taxable provider — coaching, ed-tech, private hostel or non-notified skill institute — must register once aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in special-category states). Purely-exempt institutions generally need not register, but may still have to pay GST under reverse charge on imported/OIDAR services and certain notified inward supplies.
Is GST charged on a foreign university's online course taken by an Indian student?
Generally yes. A foreign university or platform supplying an online course to an Indian recipient is treated under OIDAR provisions. Where the recipient is a registered business, GST is paid under reverse charge; for supplies to unregistered individuals, the foreign supplier is required to register and pay 18% GST. Such foreign providers are not recognised Indian institutions and do not get the Entry 66 exemption.
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Related TaxClue services
GST RegistrationRegister your coaching centre, ed-tech firm or hostel with the right classification.See the service →GST Return FilingMonthly GSTR-1 & 3B with fee-wise reconciliation, done for you.See the service →ITC ReconciliationClaim eligible input credit and avoid blocked-credit errors.See the service →GST Exemption AdvisoryConfirm whether your education service is exempt or taxable.See the service →
TaxClue for education businesses
Coaching, Ed-Tech or Institution — GST Sorted
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