The government has stated that GST rates and exemptions for education services are determined by the GST Council, which includes both Union and State/UT representatives. Any change in GST rates or exemptions follows a deliberative process. Currently, no city-based differential GST rates exist. Several educational services are exempt under Notification 12/2017-Central Tax (Rate), including services provided by educational institutions to students, faculty, and staff, entrance examinations, and admission-related services. Schools receive additional exemptions for transport, catering (including mid-day meals), security, cleaning, and online journals for higher education institutions. The definition of “educational institution” includes pre-schools, schools up to higher secondary, recognized degree programs, and approved vocational courses. Additionally, affiliation services provided by educational boards to government or government-controlled schools are also exempt. Under Notification 02/2017, exemptions extend to printed books (including Braille), newspapers, journals, periodicals, children’s books, slates, chalk, and slate pencils. While the government acknowledges concerns about the financial burden on students, especially in tier-2 and tier-3 cities like Sangli, there is currently no recommendation from the GST Council to alter existing GST rates on higher education services.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO.3789
TO BE ANSWERED ON MONDAY, MARCH 24, 2025
REDUCTION OF GST ON HIGHER EDUCATION AND STUDENT AFFORDABILITY
3789. SHRI VISHALDADA PRAKASHBAPU PATIL:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government is aware that reducing GST rates on higher education and educational payments could significantly alleviate the financial burden on students;
(b) if so, whether the Government has considered to reduce GST on higher education and related payments to the slabs 12%, 5% or 0%;
(c) if not, the reasons for maintaining the current GST rates on educational services; and
(d) whether any consultations has been made with stakeholders regarding GST reforms for the education sector particularly addressing the financial burden on students of tier-2 and tier- 3 cities such as Sangli where access to higher education is already constrained by economic factors?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a), (b), (c) & (d): GST rates and exemptions are prescribed based on the recommendations of the GST Council, which is a Constitutional body comprising members from both the Union and State/UT Governments. Any decision regarding change in rates/exemptions or otherwise is made only after GST Council’s deliberative process. Currently, no differential GST rates based on category of cities are in effect.
At present various exemptions provided under the GST framework to education sector are as under:
A. Notification 12/2017 – Central Tax (Rate) dated 28.06.2017
1. Sl 66:
a. Services provided by an educational institution to its students, faculty and staff;
b. Services by an educational institution by way of conduct of entrance
c. The following services provided to an educational institution:
i. Services relating to admission to, or conduct of examination by, such institution;
ii. If provided to pre-school or upto higher secondary school:
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- Transportation of students, faculty and staff;
- Catering, including mid-day meals scheme sponsored by the Central Government, State Government or Union territory;
- Security or cleaning or housekeeping services performed in such educational institution;
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iii. Supply of online educational journals or periodicals (provided to higher educational institution);
“educational institution” has also been defined as an institution providing services by way of,-
(i) pre-school education and education up to higher secondary school or equivalent;
(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
(iii) education as a part of an approved vocational education course;
2. Sl No. 66A: 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.
B. Notification No. 02/2017 – Central Tax (Rate) dated 28.06.2017 provide exemption to various items which are as under:
1. Printed books, including Braille books
2. Newspapers, journals and periodicals, whether or not illustrated or containing advertising material
3. Children’s picture, drawing or colouring books
4. Slate pencils and chalk sticks
5. Slates
At present, there is no recommendation from the GST Council regarding exemption or clarification for any other educational service.
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