GST on Education Services: What’s Exempt & What’s Not? [2025 Updated List]

Confused whether tuition, online classes, or school transport attract GST? Here’s a complete guide on GST-exempt education services in India.

Introduction

Education is a fundamental service — and under GST, it is treated with due care. The law provides several exemptions for educational institutions, services to them, and related activities, but there’s also confusion around private coaching, online courses, and auxiliary services.

In this handout, we’ll simplify the GST exemptions applicable to education services, bust common myths, and give you a clear understanding of what’s exempt and what’s not — as per the latest list notified by the Government up to 2025.

What Are GST-Exempt Education Services?

A. Services Provided By Educational Institutions to Students, Faculty & Staff

1. Education up to Higher Secondary School
   • Pre-school (e.g., play schools)
   • Primary to 12th standard
2. Services Included:
   • Transportation of students, staff & faculty
   • Catering (including mid-day meals)
   • Security, housekeeping, and cleaning
   • Conduct of examinations or admissions

Supply of online journals or periodicals (only for schools or approved vocational courses)

B. Services Provided To Educational Institutions (School Level Only)

GST exemption also applies if the following services are provided to a school (not college or private institute):

• Transportation of students or staff
• Catering or mid-day meal programs
• Security and housekeeping
• Conduct of exams or entrance tests
• Online journals and periodicals (only for school or approved vocational courses)

Services NOT Exempt under GST

Even though education is essential, not all educational services are GST-free. Here are common exceptions:

🚫 Service Type	GST Applicable?	Notes
Private coaching centers	✅ Yes	Even if for school syllabus
Online courses (not run by schools)	✅ Yes	E.g., EdTech platforms
Colleges offering degrees (but not recognized)	✅ Yes	Unrecognized institutes are taxable
Skill training for adults by Pvt. Cos.	✅ Yes	Unless covered under Govt scheme
Supply of uniform, books, stationery	✅ Yes	Considered sale of goods
Room rent/hostels (non-residential use)	✅ Yes	Residential use is exempt

What is an “Educational Institution” under GST?

According to GST law, an educational institution means one providing:

1. Pre-school to higher secondary education
2. Part of approved vocational course
3. Programs leading to a qualification recognized by law (e.g., UG/PG Degrees)

Example: A college offering a UGC-recognized B.Com course = Educational Institution ✔️
A coaching center offering CA coaching = ❌ Not recognized under GST exemption

CBIC Clarifications (Case References)

• Circular No. 107/26/2019-GST: Clarifies that supply of notebooks, uniforms, etc., even by schools, is taxable.
• Advance Ruling – Royal Global School (Assam): Canteen services outsourced to third party inside school premises are not exempt if service provider directly bills students.

HSN / SAC Code for Education Services and Related Activities

Service Description	SAC Code	GST Rate	Exemption Status
Pre-school to Higher Secondary Education (by educational institution)	9992	Exempt	✅ Exempt under GST
Education leading to recognized qualification (e.g. B.A., B.Com, B.Sc.)	9992	Exempt	✅ Exempt
Approved vocational education courses	9992	Exempt	✅ Exempt
Private coaching centers (e.g. NEET, UPSC, IIT-JEE)	9992	18%	❌ Taxable
Online education services (not by schools)	9992	18%	❌ Taxable
Conduct of exam by educational institutions (up to higher secondary level)	9992	Exempt	✅ Exempt
Security / Housekeeping / Catering services to schools (upto higher secondary)	9985 / 9986	Exempt (if to eligible school)	✅ Exempt
Transportation of students, staff, faculty by or to eligible school	9964	Exempt	✅ Exempt
Hostel services by school (used for residence)	9963	Exempt	✅ Exempt
Supply of school uniforms, books, stationery (by any person including school)	Various	5%–12%	❌ Taxable (as goods)
Online journals/periodicals (supplied to eligible institutions only)	9984	Exempt	✅ (Restricted scope)
Entrance exam services (e.g., NEET by NTA or schools)	9992	Exempt	✅ Exempt
Transportation by third party not specifically linked to school	9964	18%	❌ Taxable

When in doubt, refer to Notification No. 12/2017 – Central Tax (Rate), which governs exemptions, and check for the specific SAC code in the GST Rate Notification for Services.

Common FAQs

Q1. Is online education exempt from GST?
➡️ No, unless it is provided by a school for pre-school to 12th class or part of approved vocational course.

Q2. Is tuition by private teachers exempt?
➡️ No. Tuition or coaching provided by individual teachers is subject to GST if turnover exceeds ₹20 lakhs (₹10 lakhs in special category states).

Q3. Are NEET, JEE, UPSC coaching classes exempt?
➡️ ❌ No. They are commercial services and attract 18% GST.

Q4. Is GST applicable on school bus services?
➡️ If provided by or to a school (up to higher secondary level), then it is exempt.

Summary Table: Education Services & GST Treatment

Type of Service	GST Applicable?	Remarks
School education (Pre to 12th)	❌ Exempt	Full exemption
Degree courses from recognized university	❌ Exempt	Recognized by law
Private coaching / tuitions	✅ Yes	Even if for school syllabus
Services to school (security, cleaning, etc.)	❌ Exempt	Upto higher secondary level
Transport/Catering by 3rd party to school	❌ Exempt	If for school students
Sale of books, uniforms, stationery	✅ Yes	Treated as goods
Online coaching (by EdTech or app)	✅ Yes	Not exempt

Final Thoughts

While education is largely exempt from GST, the exemption is restricted only to specified institutions and activities. Private tuitions, online classes, and non-recognized degree providers are not exempt.

As a taxpayer or service provider, it is important to evaluate whether your service fits into the exempt category, and plan billing, registration, and compliance accordingly.