Understanding GST on Education Services

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The Indian government collected ₹4,792 crore in Goods and Services Tax (GST) from education services in the fiscal year 2023–24, primarily from commercial coaching and training centers, which are subject to an 18% GST under Service Accounting Code (SAC) 9992 .

🎓 Understanding GST on Education Services

While core educational services provided by institutions such as schools and colleges are exempt from GST, the following services are taxable:

Commercial coaching and training centers: These institutions offer educational services that are not part of a curriculum recognized by law and are thus subject to GST.
Online education platforms: E-learning services that do not lead to a qualification recognized by law are taxable.
Skill development programs: Unless part of an approved vocational course, these programs attract GST.

✅ GST-Exempt Educational Services

The GST Council has outlined specific educational services that are exempt from GST:

Pre-school to higher secondary education: Services provided by institutions up to higher secondary school or equivalent.
Education leading to recognized qualifications: Courses that are part of a curriculum for obtaining a qualification recognized by law.
Approved vocational education courses: Programs recognized by the National Council for Vocational Training or the State Council for Vocational Training.
Services related to admission or conduct of examination: Services provided by educational institutions to students, faculty, and staff.
Transportation, catering, security, cleaning, or housekeeping services: When provided to educational institutions up to higher secondary level.

📊 GST Collection Over the Years

The government’s GST collection from non-exempt education services has seen a steady increase:

FY 2021–22: ₹2,859 crore
FY 2022–23: ₹4,243 crore
FY 2023–24: ₹4,792 crore

🧾 Implications for Educational Institutions

Educational institutions offering non-exempt services must ensure compliance with GST regulations, including:

GST registration: Mandatory for institutions exceeding the threshold turnover.
Timely GST filings: Regular filing of GST returns to avoid penalties.
Accurate invoicing: Issuing GST-compliant invoices for taxable services.
Input Tax Credit (ITC) management: Proper accounting of ITC on inputs used for taxable services.