GST in Education and Training Industry


For the implementation of GST from July,2017 , Draft law of GST compensation has been approved by the GST council in 10th meeting. Now, three crucial draft laws — Central GST (CGST), Integrated GST (IGST) and State GST (SGST) expected to be approved in the next meeting held on 4 and 5 march.

GST will impact on each and every industry & business in India. In Education and Training Industry, India holds an important place in the global education industry. The country has more than 1.4 million schools with over 227 million students enrolled and more than 36,000 higher education institutes. India has one of the largest higher education systems in the world. However, there is still a lot of potential for further development in the education system. India has become the second largest market for e-learning after the US.

In the Education and Training Industry will also be impacted by GST and impact is elaborate in the following aspects:-

  1. Tax Payment
  2. Registration
  3. Input Tax Credit
  4. Returns
  5. Refund


  1. Tax Payment:

In the existing indirect tax structureeducation and training industry enjoy various tax exemptions and tax benefits.

  • Education services provided by an educational institution (i.e. institution providing services of pre-school education and education up to higher secondary school not coaching instituteOR education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in forceOR education as a part of an approved vocational education courseto its students, faculty and staff.
  • In addition of above, Following Services provided to an educational institution(i.e. institution providing services of pre-school education and education up to higher secondary school not coaching instituteOR institution providing services of education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force OR institution providing services of education as a part of an approved vocational education course)—

(i)Transportation of students, faculty and staff;  (ii) Catering, including any mid-day meals scheme                            sponsored by the Government;  (iii) Security or  cleaning or house-keeping services performed in such                        institution; (iv) Services relating to admission to, or conduct of examination by such institution.

»   Following Services provided by the Indian Institutes of Management to their students as per the guidelines of the Central Government:-

  1. 2 years full time residential Post Graduate Programme in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT), conducted by Indian Institute of Management
  2. Fellow programme in Management
  3. 5 year integrated programme in Management.

»   Services of National Skill Development Programme implemented by the National Skill Development Corporation (NSDC)OR A vocational skill development course under the National Skill Certification and Monetary Reward Scheme ORAny other Scheme implemented by the National Skill Development Corporation by the following:-

  1. National Skill Development Corporation set up by the Government of India
  2. Sector Skill Council(SSC) approved by the NSDC
  3. Assessment agency approved by the SSC or NSDC
  4. A training partner approved by the SSC or NSDC.

»    Services of skill or vocational training courses certified by National Council For Vocational Training provided by training providers i.e. Project implementation agencies under Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of Rural Development.

»    Services of training or coaching in recreational activities relating to arts, culture or sports.

Any education and training service except aforesaid education and training services are liable of Service Tax @15%.

In the GST Law, It is expected that any education and training service except exempted in existing tax system will of GST @18% then the price will up by 3%. But the input Tax credit will be allowed on the input goods which was not available in existing tax system resulting some relaxation to the education and training service provider.

And it is expected that exempted services in the existing tax system will continue to remain exempt as exempt supply in GST law.   

2. Registration:

In the existing tax system, Centralized registration facility is available for the taxpayer who provides education and training services from more than one premise. Such premises may be located in the same state or in different states.

In the GST Law, State wise registration is mandatory i.e. If any institution supply services from more than one premises located in different states then registration in every state from where services supplied is mandatory.

For Example: – ABC smart classes having 20 offices in India and each office is located in different state and provide services and head office is situated in New Delhi. In present tax system, Centralized registration facility may be availed by the ABC smart classes however in the GST law, Registration in all 20 states is mandatory for ABC smart classes.

Migration of Existing Taxpayers into GST has been started from 08th Nov 2016.  In the migration, taxpayers can log in to GST Portal i.e. to fill the required fields and submit scanned documents.

  1. Input Tax Credit:

In the existing tax structure, education and training services are provided by the various institution and they procure various goods and services for providing education and training services. Service provider avail the credit of service tax paid on input services however can not avail the credit of input tax on procured goods for providing services.

In the GST law, institution which will provide education and training services can avail the credit of CGST+SGST or IGST (as the case may be) paid on input goods and services procured for providing education and training services in the following manner:

  • Cross utilization of CGST and SGST will not be permitted i.e. for the payment of SGST, input of CGST is not available and vice-a-versa.
  • For the payment of CGST, first input of CGST to be used then input IGST to be used.
  • For the payment of SGST, first input of SGST to be used then input IGST to be used.
  • For the payment of IGST, first input of IGST to be used then input CGST and then input of SGST to be used.


  1. Returns:

In the existing tax structure,Education and Training service provider are required to file the following returns:-

  • Half Yearly Service Tax return.
  • Annual Service Tax return.

In the GST law, institution which will provide education and training services are required to file the following returns:-


Return Form Particulars Due Date Applicable For
GSTR-1 Outward Supplies 10thdayof next month Normal Taxpayer
GSTR-2 Inward Supplies 15thdayof next month Normal Taxpayer
GSTR-3 Monthly return / Common Return 20thdayof next month Normal Taxpayer
GSTR-8 Annual Return 31st December of the next FY Normal Taxpayer/Compounding Taxpayer
GSTR-4 Quarterly Returnfor person covered under Composition Scheme 18hdayof next month of quarter Compounding Taxpayer
GSTR-5 Return by Non Resident Taxpayer Ø  If registration period is less than month -within 7 days after the date of expiry of registration.

Ø If registration period is more than one month then to be furnished on monthly basis -20thday of next month.



Non Resident Taxpayer

In addition of above returns, GSTR- 6 and GSTR- 7 are required to be filled by Input Service Distributer and Tax deductor respectively.

  1. Refunds

Same as refund in existing tax structure, Refund under GST by Educational and Training institution may be availed in the following situations:-

  • In case of excess payment
  • In case of export of services
  • In case of Finalization of Provisional Assessment.
  • In case of pre deposit in case of Appeal.

Further, Refund application shall be filled within 2 years from the relevant date.



Mob: – +91-9716665748

Email Id: [email protected]

30 Replies to “GST in Education and Training Industry”

  1. Ankit says:

    Kya coaching centre par bhi gst lago hoga.
    Plz answer

      1. kr says:

        What is the GST implication on an online education firm. It is registered in delhi. But provides services thru online subscription model and has customers all over india. It does not have physical offices anywhere else outside delhi. Services are purely online and payment also collected online. Pls explain the obligations in terms of registration, rates etc.

    1. Chandan says:

      What rate of tax should be charged on coaching and institute

  2. Anonymous says:

    Our business at Maharashtra and we supply goods to Gujarat. We have to register GST in both the state

    1. Admin says:

      If u have different vat numbers in different states , then the answer is yes

  3. Deepa says:

    Counselling and consultant services for clients and DMIT testing will have to pay GST?

  4. Anonymous says:

    Thank you for sharing it.
    Contact on this no. 9414070678
    archedu. org

  5. pandit says:

    11th and 12th coching classes gst ?

    1. Admin says:

      Yes it is applicable to educational institutes.


    We are going to open IELTES Centre through franchise of a company. .
    Is Registeration under GST required if total turnover is bellow 20lakhs

  7. Shweta says:

    Is CBSE affiliated school required GST Registration?

  8. Anil Beniwal says:

    Mai computer center mai HDFA ka course krta hu or mujse 18%gst charge kiya jata hai kya ye shi hai fee par ksisa gst lgega or kyo please reply 9728145342

  9. thyagraj says:

    we are running a private computer institution. whether GSt applies on the fees collected from student. if so, what is the rate %? pls inform us

  10. deepak says:

    Hi we provide Skilled Manpower to Education Industry also, GST not applicable on School, so when we’ll submit GST return of School bill what notification no. or any exempted no. we should mention there?

    Plz help

  11. Rao says:

    Mentoring people one on one coaching sessions, will it have GST implications, if so how much?

  12. Anonymous says:

    Mujhe gst return karna sikhna h

  13. ABC says:

    i only want to know that what is the rate of GST on Computer Course

  14. MS says:

    So to gain knowledge we have to pay more tax. And using that knowledge we should be able earn something so that we can pay even more tax 😀

  15. Sakshi says:

    If we left coaching in 5-6 days after payment of whole fees then with fees refund there will be deduction of full year get amount or not??? Plz ans


    we r purchased 20 computers for non grantable college. can we applicable for GST ? if yes how many %.

  17. Manoha says:

    We started a business related to Online Services and we registered. My doubt is now we are providing training in the same business. Can we register for training again or Registration for Business is enough.

  18. abdul says:

    what will be gst on educational dvd

  19. Asim Kumar Sur says:

    Whether the GST charged on the franchise fee and the royalty fee payable on pre-primary school run by an educational institution can be taken as intput credit and utilised against the GST Charged on tuition fee for other coaching run by the same institution.

  20. Prakash Gaidhani says:

    Whether training & coaching service provided by the One Govt. department to other Govt Department, in addition to their own recruits, for consideration is liable for service tax for the period upto 30th June 2017 and for GST from 1st July,2017

  21. SATISH M says:

    iam running the driving school wheather the gst is applicable for us and how to refund the gst amount

    1. Admin says:

      If you are running a driving school and the PAN under which this business is being run is having a aggregate business/services turnover of more than 40 Lakhs then you have to register yourself under GST. Further, the gst paid by you shall be eligible for ITC after taking the GST registration and shall be adjusted against the GST collected by you from your customers. Hope it clears your thoughts.

  22. Tanmay chitre says:

    Hello sir m also owner of driving u said that if we cross the limit of 40lacs then we have to register ourself under gst. My question is under which section this rule comes

  23. Tanmay says:

    Hello sir
    I m also running driving school in nagpur MS pls send the details authountic rule/ order regarding GST 40Lacks limit

  24. Giridhar Nayak Sujir says:

    Sir, We are in government training program and we are compelled to issue a zero tax invoice to government. Mean time we are incurring lot of expenses like building rent , etc etc where we are forced to charge GST on it. Can we claim the gst paid through rent and other bills as input credit

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