GST on Education — Schools, Colleges, Coaching Institutes and Online Learning

Education is largely exempt from GST in India — but the exemption has boundaries. Traditional educational institutions enjoy nil GST, while commercial coaching institutes and online learning platforms face 18% GST. Understanding these distinctions is important for educational institutions, coaching centres and edtech businesses across Kerala. Here is the complete guide.

Exempt Education Services (Nil GST)

• Pre-school and school education up to higher secondary (Class 12)
• Degree/diploma programmes by recognised universities and colleges
• Education provided by government institutions
• Technical and vocational training courses run by a National Skill Development Corporation (NSDC) empanelled training partner
• Services provided by an educational institution to its students, faculty and staff — including hostel, canteen, transport
• Services provided by an IIT, IIM, NIT or other centrally funded technical institution

Taxable Education Services (18% GST)

• Coaching institutes for NEET, JEE, CAT, UPSC, bank exams — 18% GST
• Private tuition services (individual tutors) — If turnover exceeds ₹20 lakh, 18% GST
• Online tutoring platforms (Byju's, Unacademy, etc.) providing recorded courses — 18% GST
• Professional training courses (spoken English, computer courses, soft skills training)
• Dance, music, drama, arts coaching not affiliated with a recognised institution

Grey Area — Is Your Coaching Centre Exempt?

The exemption applies to "educational institutions" which are defined as institutions providing education as part of a curriculum for obtaining a qualification recognised by law. Coaching centres preparing students for entrance exams are NOT educational institutions under GST — they are commercial service providers. This position was confirmed by AAR rulings in multiple states.

Input Tax Credit for Educational Institutions

Since most genuine educational institutions provide exempt services, they generally cannot claim ITC on their purchases (GST on furniture, equipment, construction, etc.). ITC is only available if the institution also provides taxable services (e.g., a deemed university that runs a commercial coaching wing separately).

Online Education — Edtech GST

Recorded online courses sold through apps/websites are taxable at 18% GST (treated as supply of service). Live online classes by an individual tutor may be exempt if the tutor is below the ₹20 lakh threshold. Platforms like Byju's, Unacademy and coursera charge 18% GST to Indian subscribers.

Conclusion

GST on education requires careful analysis of the institution's recognition status and the nature of services. SPOTON assists schools, colleges, coaching institutes and edtech businesses across Kerala with GST registration and compliance. Contact us for expert education sector GST advisory.