Education has a valuable GST exemption — but it’s narrower than most coaching-class and edtech owners assume. Core education by recognised institutions is exempt; commercial coaching and online learning generally are not. Knowing which side you’re on is the whole question.
What is exempt
Education provided by recognised schools, colleges and institutions delivering a curriculum leading to a recognised qualification is exempt from GST — as are certain closely related services to those institutions. This is the exemption that keeps mainstream schooling out of GST.
Where coaching and edtech are taxable
Private coaching classes, competitive-exam institutes, skill and hobby classes, and edtech/online course platforms generally fall outside the exemption and are taxable at 18% as a service. Once your fee income crosses the ₹20 lakh services threshold, registration becomes mandatory. Many growing coaching businesses cross it without realising and need to regularise.
Practical points for coaching businesses
- Taxable at 18% once over the ₹20 lakh services threshold
- Online/edtech supply has place-of-supply and (for some) OIDAR considerations
- Sale of study material may carry its own rate — segregate from tuition fees
- Registration lets you claim input credit on rent, equipment and marketing