GST Education
Schools Exempt · Coaching 18%

EDUCATION GST EXEMPTION: (1) SCHOOLS (pre-school to higher secondary): 100% EXEMPT. (2) RECOGNIZED COLLEGES + UNIVERSITIES (UGC, AICTE approved): 100% EXEMPT. (3) BOARDS (CBSE, ICSE, State Board): EXEMPT. (4) GOVERNMENT SKILL DEVELOPMENT programs: EXEMPT. (5) APPROVED VOCATIONAL training: EXEMPT. (6) PUBLIC EXAM CONDUCTING (UPSC, NEET): EXEMPT. NOT EXEMPT: (1) COACHING/TUTORING: 18%. (2) ONLINE COURSES: 18%. (3) PRIVATE EDUCATION: 18%. (4) NON-RECOGNIZED institutions: 18%.

COACHING + EDTECH GST: (1) COACHING CLASSES (Aakash, Allen, FIITJEE): 18% GST. (2) ONLINE COURSES (Byju's, Unacademy, Vedantu, upGrad): 18% GST. (3) MOOCs (Coursera India, edX): 18% GST. (4) PROFESSIONAL CERTIFICATION (CA, CS, CMA prep): 18%. (5) LANGUAGE COURSES + skill training: 18%. (6) CORPORATE TRAINING: 18%. EXAMPLE: ₹1L Byju's annual subscription. (a) GST 18% × ₹1L = ₹18K additional. (b) Total ₹1.18L. (c) Consumer absorbs GST. (d) 80E education loan interest separately deductible.

KEY: only formal recognized education exempt.

EDUCATIONAL MATERIALS GST, on the GST 2.0 schedule effective 22 September 2025 — this is where the reform hit education hardest: (1) PRINTED BOOKS (textbooks + reference, including Braille): NIL. (2) NEWSPAPERS, JOURNALS + PERIODICALS: NIL. (3) CHILDREN'S PICTURE, DRAWING + COLOURING BOOKS: NIL. (4) EXERCISE BOOKS, GRAPH BOOKS, LABORATORY NOTEBOOKS + NOTEBOOKS: NIL — cut from 12%. (5) PENCILS, CRAYONS, PASTELS: NIL — cut from 12%. (6) PENCIL SHARPENERS: NIL — cut from 12%. (7) ERASERS: NIL — cut from 5%. (8) MAPS, ATLASES, GLOBES + charts: NIL — cut from 12%. (9) GEOMETRY BOXES, MATHEMATICAL BOXES + COLOUR BOXES: 5% — cut from 12%. (10) BALL POINT PENS, FOUNTAIN PENS + markers: 18% (NOT cut — pens were left out of the education relief, only pencils went to Nil). (11) E-BOOKS: 18%. (12) LAB EQUIPMENT: depends on the HSN heading — with the 12% slab gone it now sits at 5% or 18%; check the specific item rather than assuming a single rate. STRATEGIC: (1) A school's stationery bill fell sharply — notebooks, pencils and geometry boxes were the bulk of it. (2) Schools and colleges are EXEMPT suppliers, so they get NO ITC benefit; a rate cut on what they BUY is a straight cost saving. (3) Stationery retailers now sell mostly Nil-rated goods while paying 18% on some inputs — expect ITC accumulation and check whether a refund route applies.

Source: GST Council 56th meeting, Annexure 9 (Education); Notification 10/2025-Central Tax (Rate).

GOVERNMENT SKILL DEVELOPMENT: (1) PMKVY (Pradhan Mantri Kaushal Vikas Yojana): EXEMPT. (2) DDU-GKY (Deen Dayal Upadhyaya Gramin Kaushalya Yojana): EXEMPT. (3) NATIONAL SKILL DEVELOPMENT mission programs: EXEMPT. (4) NSDC partner programs: EXEMPT (specific). (5) Industrial Training Institutes (ITIs): EXEMPT. (6) GOVT polytechnics: EXEMPT. STRATEGIC: Government-recognized skill programs — no GST.

Private skill training — 18%. CSR partnerships with NSDC: GST-exempt.

NEET/JEE coaching: 18% (private coaching). Government coaching for SC/ST/OBC: EXEMPT (specific schemes).

EDUCATION GST STRATEGY: (1) MAIN SCHOOLING: zero GST cost. (2) PRIVATE TUTORING + COACHING: factor 18% GST. ₹1L coaching = ₹1.18L. (3) ONLINE LEARNING SUBSCRIPTIONS: 18% — high-value monthly bills hurt. (4) CHILDREN'S 80C: ₹1.5L school + university tuition (old regime). (5) EDUCATION LOAN 80E: full interest deductible (no GST issue on loan). (6) BUSINESS TRAINING: 18% GST + ITC available for businesses. (7) SCHOLARSHIPS + grants: separate GST treatment. (8) FOREIGN UNIVERSITIES exam fees: variable. (9) FOREIGN ONLINE COURSES (Coursera India): 18%. (10) PARENTS PAYING: bear GST cost. RECOMMENDED: claim 80E + 80C where applicable.

EDTECH cost factor 18% in subscription decisions.