Education Sector

4. Provisions relating to exemptions: –

 

Notification No. 12/2017- Central Tax (Rate)

Exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:-

 

S. No.	Chapter, Section, Heading, Group or Service Code (Tariff)	Description of Services
22	Heading 9966 or Heading 9973	Services by way of giving on hire –  (c) motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education and education upto higher secondary school or equivalent. Inserted by Notification No. 02/2018- Central Tax (Rate)
66	Heading 9992 or Heading 9963 Inserted by Notification No. 28/2018- Central Tax (Rate)	Services provided - by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee {Inserted by Notification No. 02/2018- Central Tax (Rate)} to an educational institution, by way of,- transportation of students, faculty and staff; catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; security or cleaning or house- keeping services performed in such educational institution; services relating to admission to, or conduct of examination by, such institution; upto higher secondary {Omitted by Notification No. 02/2018- Central Tax (Rate)} (v) supply of online educational journals or periodicals; {Inserted by Notification No. 02/2018- Central Tax (Rate)}   Provided that nothing contained in entry (b) sub-items (i), (ii) and (iii) of item (b) {substituted by Notification No. 02/2018- Central Tax (Rate)} shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.   Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution providing services by way of,- (i) pre-school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course. {Inserted by Notification No. 02/2018- Central Tax (Rate)}
66A	Heading 9992	Services of affiliation provided by a Central or State Educational Board or Council or any other similar body, by whatever name called, to a school established, owned or controlled by the Central Government, State Government, Union Territory, local authority, Governmental authority or Government entity. {Inserted by Notification No. 08/2024- Central Tax (Rate)}
69	Heading 9992 or Heading 9983 or Heading 9991   Heading 9983 or Heading 9991 or Heading 9992	Any services provided by, _ the National Skill Development Corporation set up by the Government of India; a Sector Skill Council approved by the National Skill Development Corporation; an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; a training partner approved by the National Skill Development Corporation or the Sector Skill Council, in relation to- the National Skill Development Programme implemented by the National Skill Development Corporation; or a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or any other Scheme implemented by the   National   Skill   Development Corporation. Any services provided by – (a) the National Skill Development Corporation set up by the Government of India; (b) the National Council for Vocational Education and Training; (c) an Awarding Body recognized by the National Council for Vocational Education and Training; (d) an Assessment Agency recognized by the National Council for Vocational Education and Training; (e) a Training Body accredited with an Awarding Body that is recognized by the National Council for Vocational Education and Training, in relation to- (i) the National Skill Development Programme or any other scheme implemented by the National Skill Development Corporation; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any National Skill Qualification Framework aligned qualification or skill in respect of which the National Council for Vocational Education and Training has approved a qualification package. (f) a training partner approved by the National Skill Development Corporation {Substitute by Notification No. 08/2024- Central Tax (Rate)}  {Inserted by Notification No. 06/2025-Central Tax (Rate)}
71	Heading 9992	Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana implemented by the Ministry of Rural Development, Government of India by way of offering skill or vocational training courses certified  by  the  National  Council  for Vocational Training. National Council for Vocational Education and Training {Substituted by Notification No. 08/2024- Central Tax (Rate)}
72	Heading 9992	Services provided to the Central Government, State Government, Union territory administration under any training programme for which 75% or more of the total expenditure is borne by the Central Government, State Government,                   Union     territory administration. {inserted by Notification No. 07/2021- Central Tax (Rate)}

 

 

 

 

 

5. Taxable Services (Even if Provided by/for Educational Institutions): -

 

Nature of Service	GST Applicability
Sale of uniforms/stationery by private vendors	Taxable (12%/18%)
Canteen services (by third-party vendors)	Taxable (5%/18%)
Renting of premises to a business or commercial entity	Taxable
Construction services availed by institution	Taxable (18%)
Supply of goods (projectors, computers)	Taxable
Private coaching/tutoring centres not recognized	Taxable (18%)
Online education platforms (non-recognized)	Taxable (18%)

 

6. Exempt Services Provided by Educational Institutions: -

 

Nature of Service	GST Status
Tuition fees	Exempt
Admission/Exam fees	Exempt
Transportation (provided by institution)	Exempt
Hostel accommodation by institution	Exempt
Curricular and co-curricular activities	Exempt
Affiliation fees to Boards	Exempt
Renting of premises to another educational institution	Exempt

 

 

7. Provisions relating to ITC: -

Section 16 of CGST Act, 2017 provides provisions for eligibility and conditions for claiming of ITC. Th e credit is available to the service provider or the manufacture of the duty or tax paid on ‘capital goods’, ‘inputs’ and ‘input services’. The ITC is not available when used for providing exempted output service. Thus, to the extent output services are exempt from the payment of GST, the credit of duties and taxes paid on inputs/input services used therein will not be available.

Since all supplies are primarily in relation to the educational services, school cannot take ITC on such supplies. However, in case any input services is specifically used in provision of taxable output supply, ITC of such input services may be taken.

 

8. Provisions relating to Time of Supply (TOS): –

Section 13 provides provisions related to TOS. No specific provision has been provided in relation to education services. The TOS shall be determined in accordance with section 13(2) of the CGST Act, 2017.

 

9. Provisions relating to Place of Supply (POS): –

Section 12 & 13 of IGST Act provides provisions related to POS. No specific provision has been provided in relation to education services. The POS shall be determined in accordance with section 12(2) & 13(2) of the CGST Act, 2017.

 

10. Provisions relating to Reverse Charge Mechanism (RCM): -

 

RCM provisions under GST for the education sector are limited and apply only in specific cases. Generally, education services provided by educational institutions (like schools, colleges, universities) are exempt under GST. However, RCM may apply when these institutions receive certain services from specified providers. As discussed below: -

 

Category of Supply of Services –

 

Supply of Services by a GTA in respect of transportation of goods by road to –

• any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or
• any co-operative society established by or under any law; or
• any person registered under the CGST Act or IGST Act or SGST Act or UTGST Act; or

 

“Provided that nothing contained in this entry shall apply to services provided by a GTA, by way of transport of goods in a goods carriage by road, to, -

(a) a Department or Establishment of the CG or SG or UT; or

(b) local authority; or

(c) Governmental agencies, which has taken registration under the CGST Act, 2017 only for the purpose of deducting tax under section 51 and not for making a taxable supply of goods or services.

 

“Provided further that nothing contained in this entry shall apply where, -

i. the supplier has taken registration under the CGST Act, 2017 and exercised the option to pay tax on the services of GTA in relation to transport of goods supplied by him under forward charge; and

ii. the supplier has issued a tax invoice to the recipient charging Central Tax at the applicable rates and has made a declaration as prescribed in Annexure III on such invoice issued by him.”;

 

Supplier of service - Goods Transport Agency (GTA)

 

Recipient of Service: -

1. any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force in any part of India; or
2. any co-operative society established by or under any law; or

 

 

Category of Supply of Services – Services by way of legal services, directly or indirectly.

 

Supplier of service - An individual advocate including a senior advocate or firm of advocates.

 

 

 

Category of Supply of Services –

Services supplied by an arbitral tribunal to a business entity.

 

Supplier of service - An arbitral tribunal.

 

Recipient of Service: - Any business entity located in the

 

 

Category of Supply of Services –

Services provided by way of sponsorship to any body corporate or partnership firm.

 

Supplier of service - Any person other than a body corporate.

 

 

Category of Supply of Services – Services supplied to a business entity excluding, -

1. renting of immovable property, and
2. services specified below-

(i) services by the Department of Posts and the Ministry of Railways (Indian Railways)”

(ii) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

(iii) transport of goods or passengers.

 

Supplier of service – CG/SG/UT/LA

 

 

 

Category of Supply of Services – Services supplied by CG excluding the Ministry of Railways (Indian Railways) SG/UT/LA by way of renting of immovable property to a person registered under CGST Act, 2017.

 

Supplier of service - CG/SG/UT/LA

 

 

Category of Supply of Services – Service by way of renting of any immovable property other than Any residential dwelling.

 

Supplier of service - Any unregistered person

 

 

 

Category of Supply of Services – Security services (services provided by way of supply of security personnel) provided to a registered person: 

Provided that nothing contained in this entry shall apply to, -

(i) (a) a Department or Establishment of CG/SG/UT; or

(b) local authority; or

(c) Governmental agencies;

which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or

(ii) a registered person paying tax under section 10 of the said Act.

 

Supplier of service – Any person other than a body corporate

 

 

11. Circular No. 151/07/2021-GST: -

 

Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination {NBE}) –

 

GST Council has recommended, to clarify as below –

 

• GST is exempt on services provided by Central or State Boards (including the boards such as NBE) by way of conduct of examination for the students, including conduct of entrance examination for admission to educational institution [under S. No. 66 (aa) of notification No. 12/2017-CT(R)]. Therefore, GST shall not apply to any fee, or any amount charged by such Boards for conduct of such examinations including entrance examinations.
• GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notification for examination, admit card and questions papers etc, when provided to such Boards [under S. No. 66 (b) (iv) of notification No. 12/2017-CT(R)].
• GST at the rate of 18% applies to other services provided by such Boards, namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test) so as to authorise them to provide their respective services.

 

 

12. Circular No. 234/28/2024-GST: -

 

Applicability of GST on the service of affiliation provided by universities to colleges:

 

It is hereby clarified that the affiliation services provided by universities to their constituent colleges are not covered within the ambit of exemptions provided to educational institutions in the notification No.12/2017-CT(R) dated 28.06.2017 and GST at the rate of 18% is applicable on the affiliation services provided by the universities.

 

Applicability of GST on the service of affiliation provided by Central and State educational boards or Councils, or other similar bodies, to schools:

 

The services of affiliation provided to schools by educational boards or councils, or other similar bodies, are not by way of services related to the admission of students to such schools or the conduct of examinations by such schools.

It is clarified that services of affiliation, provided to schools by Central or State educational boards or councils, or other similar bodies, by whatever name called, are taxable. Further, as recommended by the Council, the payment of GST on the services of affiliation provided by Central and State educational boards or Councils, or other similar bodies, to all schools is regularized on ‘as is where is’ basis for the period from 01.07.2017 to 17.06.2021.

 

Circular No. 236/30/2024 clarify scope of “as is” or “as is, where is basis”

In the context of GST, the phrase ‘regularized on as is where is’ basis means that the payment made at lower rate or exemption claimed by the taxpayer shall be accepted and no refund shall be made if tax has been paid at the higher rate. The intention of the Council is to regularize payment at a lower rate including nil rate due to the tax position taken by taxable person, as full discharge of tax liability. The tax position of a taxable person is reflected in the returns filed by the person where the applicable rate of tax (or relevant exemption entry) on a transaction/supply is declared.

Thus, in cases where the matters have been regularized on “as is” or “ as is, where is basis”, in case of two competing rates and the GST is paid at lower of the two rates, or at nil rate where one of the competing rates was nil under notification entry, by some suppliers while other suppliers have paid at higher rate, payment at lower rate shall be treated as tax fully paid for the period that is regularized.

 

 

Applicability of GST on the Directorate General of Civil Aviation (DGCA) approved flying training courses conducted by Flying Training Organizations approved by the DGCA:

 

DGCA not only approves FTOs but also flying training courses and mandates the requirement of course completion certificates to be issued to successful candidates in terms of the Aircraft Act, 1934 and the rules prescribed thereunder. Therefore, the approved flying training courses conducted by FTOs approved by DGCA, wherein the DGCA mandates the requirement of a completion certificate, are covered under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and are hence, exempt.

 

 

13. Circular No. 177/09/2022-TRU: -

 

Applicability of GST on application fee charged for entrance or the fee charged for issuance of eligibility certificate for admission or for issuance of migration certificate by educational institutions

 

It is clarified that the amount or fee charged from prospective students for entrance or admission, or for issuance of eligibility certificate to them in the process of their entrance/admission as well as the fee charged for issuance of migration certificates by educational institutions to the leaving or ex-students is covered by exemption under Sl. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017

 

 

14. Circular No. 151/07/2021-GST: -

 

 

Clarification regarding GST on supply of various services by Central and State Board (such as National Board of Examination)

 

GST is exempt on services provided by Central or State Boards (including the boards such as NBE) by way of conduct of examination for the students, including conduct of entrance examination for admission to educational institution [under S. No. 66 (aa) of notification No. 12/2017-CT(R)]. Therefore, GST shall not apply to any fee, or any amount charged by such Boards for conduct of such examinations including entrance examinations.

 

(ii) GST is also exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notification for examination, admit card and questions papers etc, when provided to such Boards [under S. No. 66 (b) (iv) of notification No. 12/2017-CT(R)].

 

4. GST at the rate of 18% applies to other services provided by such Boards, namely of providing accreditation to an institution or to a professional (accreditation fee or registration fee such as fee for FMGE screening test) so as to authorise them to provide their respective services.

 

 

15. Circular No. 149/05/2021-GST: -

 

 

 Clarification regarding applicability of GST on supply of food in Anganwadi’s and Schools

 

It is clarified that services provided to an educational institution by way of serving of food (catering including mid- day meals) is exempt from levy of GST irrespective of its funding from government grants or corporate donations [under said entry 66 (b)(ii)].

Educational institutions as defined in the notification include Anganwadi. Hence, serving of food to Anganwadi shall also be covered by said exemption, whether sponsored by government or through donation from corporates.

 

 

16. Circular No. 85/04/2019- GST: -

 

 

Clarification on GST rate applicable on supply of food and beverage services by educational institution

 

It is clarified that supply of food and beverages by an educational institution to its students, faculty and staff, where such supply is made by the educational institution itself, is exempt under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, vide Sl. No. 66 w.e.f. 01-07-2017 itself. However, such supply of food and beverages by any person other than the educational institutions based on a contractual arrangement with such institution is leviable to GST@ 5%.

 

 

17. Circular No. 117/36/2019-GST: -

 

 

Clarification on applicability of GST exemption to the DG Shipping approved maritime courses conducted by Maritime Training Institutes of India

 

 

It is seen that the Maritime Training Institutes and their training courses are approved by the Director General of Shipping which are duly recognised under the provisions of the Merchant Shipping Act, 1958 read with the Merchant Shipping (standards of training, certification and watch-keeping for Seafarers) Rules, 2014. Therefore, the Maritime Institutes are educational institutions under GST Law and the courses conducted by them are exempt from levy of GST. The exemption is subject to meeting the conditions specified at Sl. No. 66 of the notification No. 12/ 2017- Central Tax (Rate) dated 28.06.2017.

 

 

18. Circular No. 82/01/2019- GST: -

 

 

Applicability of GST on various programmes conducted by the Indian Institutes of Managements (IIMs)

 

 

 

S. No.	Periods	Programmes offered by Indian Institutes of Management	Whether exempt from GST
1.	1st July 2017 to 30th January, 2018	i. two-year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management, ii. fellow programme in Management, iii. five years integrated programme in Management.	Exempt from GST
		i. One- year Post Graduate Programs for Executives, ii. Any programs other than those mentioned at Sl. No. 67 of notification No. 12/2017- Central Tax (Rate), dated 28.06.2017. iii. All short duration executive development programs or need based specially designed programs (less than one year).	Not exempt from GST
2.	31st January 2018 onwards	All long duration programs (one year or more) conferring degree/ diploma as recommended by Board of Governors as per the power vested in them under the IIM Act, 2017 including one- year Post Graduate Programs for Executives.	Exempt from GST
		All short duration executive development programs or need based specially designed programs (less than one year) which are not a qualification recognized by law.	Not exempt from GST

 

 

 

 

19. Circular No. 55/29/2018- GST: -

 

 

Taxability of services provided by Industrial Training Institutes (ITI)

 

It is clarified that Private ITIs qualify as an educational institution as defined under para 2(y) of notification No. 12/2017-CT(Rate) if the education provided by these ITIs is approved as vocational educational course. The approved vocational educational course has been defined in para 2(h) of notification ibid to mean a course run by an ITI or an Industrial Training Centre affiliated to NCVT (National Council for Vocational Training) or SCVT (State Council for Vocational Training) offering courses in designated trade notified under the Apprenticeship Act, 1961; or a Modular employable skill course, approved by NCVT, run by a person registered with DG Training in Ministry of Skill Development. Therefore, services provided by a private ITI in respect of designated trades notified under Apprenticeship Act, 1961 are exempt from GST under Sr. No. 66 of notification No. 12/2017-CT(Rate). As corollary, services provided by a private ITI in respect of other than designated trades would be liable to pay GST and are not exempt.

 

Whether GST is payable on the service, provided by a private Industrial Training Institute for conduct of examination against consideration in the form of entrance fee and also on the services relating to admission to or conduct of examination.

 

It is clarified that in case of designated trades, services provided by a private ITI by way of conduct of entrance examination against consideration in the form of entrance fee will also be exempt from GST [Entry (aa) under Sr. No. 66 of notification No. 12/2017-CT(Rate) refers]. Further, in respect of such designated trades, services provided to an educational institution, by way of, services relating to admission to or conduct of examination by a private ITI will also be exempt [Entry (b(iv)) under Sr. No. 66 of notification No. 12/2017-CT(Rate) refers]. It is further clarified that in case of other than designated trades in private ITIs, GST shall be payable on the service of conduct of examination against consideration in the form of entrance fee and also on the services relating to admission to or conduct of examination by such institutions, as these services are not covered by the exemption ibid.   

 

As far as Government ITIs are concerned, services provided by a Government ITI to individual trainees/students, is exempt under SI. No. 6 of 12/2017-CT(R) dated 28.06.2017 as these are in the nature of services provided by the Central or State Government to individuals. Such exemption in relation to services provided by Government ITI would cover both — vocational training and examinations conducted by these Government ITIs.