GST on Educational Institutions India 2026 — School Fees Exempt, Coaching 18%, GST 2.0 | RushTax Blog

Education is one of the most GST-sensitive sectors in India. While formal education is largely exempt, coaching centres, online courses, and ancillary services attract 18% GST. The GST 2.0 reforms (September 22, 2025) brought additional relief for school supplies. Here is the complete guide.

What Is Exempt from GST — Formal Education

Services provided by recognized educational institutions are exempt from GST:

Exempt services:

Pre-school education (nursery, KG)
School education (Classes 1–12)
Higher education leading to a recognized qualification (degree, diploma)
Education provided by government-recognized institutions
Vocational training courses approved by the National Skill Development Corporation (NSDC)

Who qualifies as a "recognized educational institution":

Schools affiliated to CBSE, ICSE, state boards
Colleges affiliated to UGC-recognized universities
Institutions approved by AICTE, MCI, BCI, etc.
Government-run educational institutions

What Attracts 18% GST

Service	GST Rate
Coaching centres (JEE, NEET, CA, etc.)	18%
Online courses (not leading to recognized qualification)	18%
Skill development courses (not NSDC-approved)	18%
Tuition classes (private tutors)	18%
Test preparation services	18%
Language learning courses	18%
Professional certification courses	18%

Key distinction: If the course leads to a recognized qualification (degree, diploma from a recognized institution), it is exempt. If it is a standalone coaching or skill course, it attracts 18% GST.

GST 2.0 Changes for Education (September 22, 2025)

School Stationery — Now GST-Free

Item	Old Rate	New Rate
Pencils, crayons, pastels	12%	0%
Drawing charcoals and chalk	12%	0%
Exercise books and notebooks	12%	0%
Erasers	12%	0%
Pencil boxes and pouches	12%	5%

Educational Books

Item	GST Rate
Printed books (textbooks, novels)	0% (exempt)
Brochures and leaflets	5%
Newspapers (published ≥4 times/week)	0% (exempt)
Magazines and periodicals	5%
E-books (digital)	18%

GST on Ancillary Services by Educational Institutions

Even recognized educational institutions must charge GST on certain ancillary services:

Service	GST Rate
Hostel accommodation (by educational institution)	Exempt (if charges ≤ ₹20,000/month)
Hostel accommodation (charges > ₹20,000/month)	18%
Transportation (school bus)	Exempt
Canteen services	5%
Examination fees	Exempt
Library fees	Exempt
Sports and extracurricular fees	Exempt

GST Registration for Educational Entities

Entity	Registration Required?
School/college (only exempt services)	Not required
Coaching centre (turnover > ₹20L)	Yes
Online education platform (turnover > ₹20L)	Yes
Private tutor (turnover > ₹20L)	Yes

Note: Even if a school provides only exempt services, it may voluntarily register for GST to claim ITC on purchases (construction, equipment, etc.).

ITC for Educational Institutions

Recognized educational institutions providing only exempt services cannot claim ITC on their inputs. This is the trade-off for the exemption.

Exception: If an institution provides both exempt services (formal education) and taxable services (coaching, hostel above ₹20,000/month), it can claim proportionate ITC on inputs used for taxable services.

GST on Online Education Platforms

Online education platforms (Unacademy, BYJU'S, Coursera, etc.) providing courses that do not lead to recognized qualifications attract 18% GST.

Foreign online education platforms: If a foreign platform provides online courses to Indian students, it must register for GST in India (OIDAR services) and charge 18% GST.

GST on Coaching Centres

Coaching centres (JEE, NEET, CA, UPSC, etc.) are not recognized educational institutions and attract 18% GST:

Registration mandatory if annual fees exceed ₹20L
Charge 18% GST on all fees
Can claim ITC on inputs (rent, equipment, software)

Recent AAR ruling (2025): The Authority for Advance Ruling has consistently held that academic coaching for students is taxable at 18% GST, even if the coaching is for recognized examinations.

Frequently Asked Questions

Is GST applicable on school fees?

No. School fees charged by CBSE/ICSE/state board-affiliated schools are exempt from GST. This includes tuition fees, development fees, and examination fees.

Is GST applicable on private tuition?

Yes. Private tutors providing coaching services attract 18% GST if their annual income exceeds ₹20L. Below ₹20L, registration is not required.

Is GST applicable on online UPSC coaching?

Yes. UPSC coaching (online or offline) is not provided by a recognized educational institution and attracts 18% GST.

Is GST applicable on school uniforms?

School uniforms are garments and attract GST based on their price — 5% if below ₹2,500 per piece, 18% if above ₹2,500 (post GST 2.0).

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