# Educational Services — GST Exemptions

## Meaning of 'Educational Institution'

An educational institution means one providing services by way of:

1. Pre-school education and education up to higher secondary school or equivalent

2. Education as part of a curriculum for obtaining a qualification recognised by any law for the time being in force

3. Education as part of an approved vocational education course

## Services BY an Educational Institution

Services provided by an educational institution to its students, faculty and staff are exempt. This also includes:

Services by way of conduct of entrance examination against entrance fees — Exempt

## Services TO an Educational Institution

Services provided to an educational institution are exempt only for institutions providing education up to higher secondary or equivalent (i.e. school level). The exempt services are:

Service	School (upto HSC)	Higher Education / Vocational
(i) Transportation of students, faculty, staff	Exempt	Taxable
(ii) Catering (including mid-day meals sponsored by Govt)	Exempt	Taxable
(iii) Security / cleaning / housekeeping	Exempt	Taxable
(iv) Services relating to admission or conduct of examination	Exempt	Exempt (for both)
(v) Supply of online journals/periodicals	Taxable	Exempt (only for higher education)

Note: Entry (iv) — admission/exam related services — and entry (v) for online journals are exempt only as specified.

## Examination Boards as Educational Institutions

CBSE, PSEB, NTA etc. are treated as educational institutions for the limited purpose of conducting examinations.

## Specific Cases

Service	Status
Boarding school / International school	Exempt
Private tuitions, placement services, campus recruitment	Taxable
Coaching institutes preparing students for competitive exams	Taxable
Postal/correspondence coaching	Taxable
Foreign courses conducted by private institutes	Taxable
Supply of food in Anganwadis and schools	Exempt
Services by FTI (Film & TV Institute), Maritime training institutes	Exempt
Services by IIM — Long duration (≥ 1 year)	Exempt
Services by IIM — Short duration certificate (< 1 year)	Taxable
Affiliation services provided to schools	Exempt
Conduct of examination by NBE (National Board of Examination)	Exempt

Worked example

### Example 1

Example 1: A CBSE-affiliated school engages a transporter to ferry students. Transporter charges ₹3 lakhs. Answer: Transportation provided TO a school (educational institution up to HSC) is exempt — no GST.

### Example 2

Example 2: IIM Bangalore conducts a 1-year Post Graduate Programme. Answer: Long-duration programmes by IIMs leading to a degree/diploma are exempt.

### Example 3

Example 3: IIM Bangalore offers a 3-month executive certificate course. Answer: Short-duration certificate courses by IIMs are TAXABLE.

### Example 4

Example 4: A coaching institute prepares students for IIT-JEE. Fees collected ₹50 lakhs. Answer: Coaching institutes are NOT educational institutions — fully taxable.

### Example 5

Example 5: A school engages a private security agency to provide guards. Answer: Security services provided TO a school are exempt.

⚠️ Common exam mistakes

Assuming all coaching institutes are exempt — they are NOT educational institutions and are fully taxable.
Treating all services TO an educational institution as exempt — only services to schools (upto HSC) are exempt for the listed five categories (and only category (iv) extends to higher education).
Forgetting that supply of online journals to higher educational institutions is exempt while to schools it is taxable.
Treating IIM short-duration certificate programmes as exempt — only long-duration (≥ 1 year) degree/diploma programmes are exempt.
Missing that boarding schools and international schools are still 'educational institutions' if they provide education up to HSC.

Bare-Act text Entry 66 · Notification No. 12/2017-CT(R) dated 28.06.2017 · click to expand

Services provided — (a) 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; (b) to an educational institution, by way of — (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; (v) supply of online educational journals or periodicals: Provided that nothing contained in sub-items (i), (ii) and (iii) of item (b) 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.

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Educational Services Exemptions

Worked example

⚠️ Common exam mistakes