GST Impact on Education Sector – Tax Rate on Educational Services in India

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July 12, 2019

GST Impact on Education Sector

Education is the process of learning new things around you. Education is the necessary right for all to get success, honour and good ideas in life. Education system plays an important role in social development and economic growth of any country.

In this post, we are going to discuss how GST will impact on the education sector and all the services related to education in India.

Education is commonly divided for the student as:

Primary education, Secondary education and Higher education.

Necessary education services are kept out of GST which is a good decision to promote education in India. Both Private and Govt. Pre-school to higher secondary organization are exempted from GST. Such institutes or organizations are not required to pay GST.

GST Exempt Educational Services

1. Pre School to Higher Secondary Schools or institutes

  • Assessment and examination fees
  • Teaching resources & curriculum materials or course materials
  • All administrative services provided to the student
  • Any trip related to study
  • Many services such as transportation, entrance exam fee, catering, security, cleaning or housekeeping etc provided by the educational institutions to students and staff.

2. National Skill Development Corporation (NSDC) set up India Government
3. Sector Skill Councils approved by NSDC India
4. Assessment agencies approved by NSDC India
5. National Skill Development Programme, vocational skill development programme and other schemes approved by NSDC or the Sector Skill Council.

Also Read: Impact of GST on Books and Stationary Items

GST Exemption Courses Provided by the IIM

  • Fellowship programs in management
  • 5 Year Integrated programs in management (Excluding executive development programme)
  • 2 year residential PG programs in management

There are many educational services which are levied at 5% to 28% GST rate.

Educational Services which are not Exempt from GST:

18% GST applicable services:
Higher education services provided by institutes or universities, expected 3-4% increase in overall cost.

5% GST applicable services:
Technical aids for education services, vocational training, employment of the blind such as Braille typewriters, teaching & learning aids and vocational aids for blind Braille instruments etc.

28% GST applicable services:
Instruments, models and apparatus, designed for demonstration purposes

GST on Education Services in PDF

GST on Coaching Institutes:

GST will make the burden on the students who are preparing for competitive exams such as Government exams, banking, and many other professional courses. 18% GST is levied on such coaching institute’s services. Earlier it was 14% as tax.

GST on Educational Organizing Events:

Any education or training events organized by foreign entities in India would be applicable for GST tax.

GST council ensures that core educational services are kept out of GST for the fundamental right of every child in India. Other not exempted GST related services would be taxed under the GST accordingly.

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