With digital learning becoming the new norm, many schools, coaching centers, and EdTech companies have moved their offerings online. But is education over the internet taxed? In this blog, we’ll explore the GST on online education, including the applicable tax rates, exemptions, HSN/SAC codes, and the impact of GST on the fast-growing EdTech sector in India.
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for pencils and closely related items (no compensation cess).
Type of Online Education Service | New GST Rate |
---|---|
Online coaching classes (e.g., UPSC, JEE, NEET) | 18% |
Online certificate/diploma courses by non-accredited platforms | 18% |
Online services by schools/colleges affiliated with recognised boards/universities* | Exempt |
Online training for skill development (non-recognised) | 18% |
Notes: *Exemption applies when services are provided by an educational institution to its students as part of a recognised curriculum or examination services (as per GST exemption entry for education services). Private coaching/ed-tech platforms that are not recognised educational institutions are generally taxable at 18%. For cross-border supplies, OIDAR rules and place-of-supply provisions may apply.
Yes, but it depends on who is offering the service and how it is categorized.
This makes understanding the category of service critical.
Type of Online Education Service | GST Rate |
---|---|
Online coaching classes (e.g., UPSC, JEE, NEET) | 18% |
Online certificate/diploma courses by non-accredited platforms | 18% |
Online services by schools or colleges affiliated with boards | Exempt |
Online training for skill development (non-recognized) | 18% |
Service | SAC Code | GST Rate |
---|---|---|
Online coaching classes | 999293 | 18% |
Vocational training (non-accredited) | 999293 | 18% |
Refer to the SAC Code list for correct filing and invoicing.
As per GST rules, the following are exempt from GST:
This means GST online classes from private tutors or EdTech apps are taxable, but school-led virtual classes are not.
Businesses offering online coaching classes or running EdTech platforms can claim ITC on:
Learn more about Input Tax Credit benefits for digital service providers.
The GST for online courses affects learners and providers in multiple ways:
For Students:
For Businesses:
The GST on online education clearly distinguishes between formal education and commercial training. While services by recognized educational institutions are GST-free, most online courses and coaching services attract an 18% GST. For EdTech businesses, GST compliance and ITC benefits are vital to operations. For students, understanding tax implications helps make better enrollment decisions in a rapidly growing digital learning ecosystem.
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