Core school services: GST-exempt
Tuition fees, admission fees, examination fees, and other services provided by an educational institution to its students are exempt from GST under the existing notifications. This covers the vast majority of fee collections at most Indian schools.
This applies to schools providing pre-school education and education up to higher secondary or equivalent, recognized by an Indian law or as part of a curriculum approved by the relevant authority.
Transport: depends on the structure
Transport services provided by an educational institution to its students, faculty, and staff are exempt — when the school operates the transport itself or through a captive provider.
When transport is contracted out and billed separately by a third-party transport operator, GST may apply. The structure of the contract matters more than the surface label. Consult a GST practitioner for your specific setup.
Books and stationery: usually taxable
Books are typically taxable at 5% (or zero-rated for printed books in specific cases). Stationery, uniforms, and other physical goods sold by the school usually attract GST. If you sell these, your fee head needs to be configured with the correct GST rate.
Coaching and auxiliary education
Coaching for entrance exams, additional classes outside the formal curriculum, and similar services may attract GST at 18%. The line between 'core education' (exempt) and 'coaching' (taxable) is interpretation-heavy. If you offer these, get a written opinion from your GST consultant.
Configuring fee heads in your ERP
Your school ERP should let you configure each fee head with its own GST treatment — exempt, 0%, 5%, 12%, 18%. The ERP should generate receipts and invoices with the correct GST treatment per fee head.
- Tuition: exempt
- Admission: exempt
- Examination: exempt
- Transport (in-house): exempt
- Transport (third-party): consult
- Books: 5% (or zero-rated)
- Uniforms: 5% / 12% / 18% per HSN
- Coaching: 18%
When GST registration is required
If your taxable supplies (after exemptions) cross the GST registration threshold (₹40 lakhs for goods, ₹20 lakhs for services in most states), you need to register. Schools whose only income is exempt-from-GST tuition typically don't need to register. Schools selling books, uniforms, and coaching services may need to.
Your accountant or GST consultant should run this calculation annually based on your specific revenue mix.
Disclaimer
This article is general guidance, not professional tax advice. GST notifications and interpretations change. For your specific GST treatment, consult a registered GST practitioner familiar with educational institutions in your state.