# Educational Services - GST Exemption

## Services BY an Educational Institution

### 1. To Students, Faculty and Staff

All services provided by an educational institution to its students, faculty and staff → EXEMPT

(Koi bhi service exempt - any service is exempt)

### 2. Conduct of Entrance Examination

Services by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fees → EXEMPT

## Services TO an Educational Institution

Services provided to an educational institution by way of the following are EXEMPT — but only for institutions providing services up to higher secondary school or equivalent (i.e., school level):

#	Service	Eligible Institution
i	Transportation of students, faculty and staff	School level only
ii	Catering, including any mid-day meals scheme sponsored by Central / State Government / UT	School level only
iii	Security or cleaning or house-keeping services in such institution	School level only
iv	Services relating to admission to, or conduct of examination by such institution	All educational institutions (including higher education)
v	Supply of online educational journals or periodicals	Only to institutions providing qualification recognised by law (degree level), NOT school or vocational courses

## Definition: 'Educational Institution'

An institution providing services by way of:

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

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

3. Education as a part of an approved vocational education course.

## Quick Decision Framework

```

Is the service BY the institution?

YES → To students/faculty/staff/entrance exam → EXEMPT

Is the service TO the institution?

Is it transport / catering / security / housekeeping?

→ ONLY exempt if institution is up to higher secondary (school level)

Is it examination-related (conduct/admission)?

→ Exempt for ALL educational institutions

Is it online journals/periodicals?

→ ONLY exempt for higher education (degree-level) institutions

→ NOT exempt for schools or vocational courses

```

Worked example

### Example 1

Example 1: A CBSE school provides bus transport to its students. Bus contractor bills the school. → Transport to school level institution → EXEMPT.

### Example 2

Example 2: A coaching institute (not recognised by law) receives catering services. → Coaching institute is NOT an 'educational institution' → TAXABLE.

### Example 3

Example 3: A degree college pays ₹2 lakh for housekeeping services. → Housekeeping to college (above school level) → TAXABLE.

### Example 4

Example 4: Online educational journal subscription supplied to IIT Delhi. → Higher education institution → EXEMPT.

### Example 5

Example 5: Online journals supplied to a CBSE school. → School level → TAXABLE (online journal exemption is only for degree-level).

### Example 6

Example 6: A school charges ₹1,000 as entrance examination fee from prospective students. → Conduct of entrance exam by educational institution → EXEMPT.

### Example 7

Example 7: A printing press prints question papers for a University's exam. → Service relating to conduct of examination → EXEMPT (applies to all educational institutions including university).

⚠️ Common exam mistakes

Treating coaching institutes (e.g., for CA, IIT-JEE) as 'educational institutions' — they are NOT, as they don't provide qualification recognised by law.
Applying the school-level restriction to examination services — examination-related services are exempt for ALL educational institutions.
Applying online journals exemption to schools — it is restricted to higher education (degree) institutions only.
Forgetting that transport/catering/security/housekeeping is exempt only up to higher secondary school.
Assuming all services to colleges are exempt — only exam-related ones are; daily-use auxiliary services are taxable at college level.
Confusing 'services BY' with 'services TO' — different rules apply.

Bare-Act text Entry 66 · Notification No. 12/2017-Central Tax (Rate) · click to expand

Services provided by an educational institution to its students, faculty and staff; services provided to an educational institution by way of transportation, catering (including mid-day meals scheme), security/cleaning/housekeeping, services relating to admission to or conduct of examination, supply of online educational journals or periodicals.

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