What is GST 2.0?
GST 2.0 is India’s new tax system that started on September 22, 2025. It makes taxes simple by reducing the number of tax rates .
What Has Changed in Education?
- Earlier, most schools and government colleges didn’t have to pay GST and that’s still the case. Basic education (Nursery to 12th grade) remains tax-free.
- But now, private coaching classes, online learning platforms, and private colleges pay GST at clear rates under GST 2.0.
GST Rates for Education Services Now
| Education Service | GST Rate | What It Means |
|---|
| Schools (Nursery to 12th Grade) | 0% | No GST, still fully tax-free |
| Government colleges & universities | 0% | No GST, tax-free |
| Private colleges & universities | 5% - 12% | GST applies, fees might increase |
| Private coaching & tuition | 18% | GST applies, can make fees costly |
| Online education platforms (EdTech) | 12% - 18% | GST applies, prices may rise |
| Skill development courses | 5% - 12% | GST applies if not govt-certified |
What Does This Mean for Students and Parents?
- Education fees may go up, especially for coaching classes and online courses.
- You might need to budget a bit more for private education.
- Government schools and colleges remain affordable as they are still GST-exempt.
How Are Educational Institutions Affected?
- Private coaching centre and colleges now have to file GST returns.
- They can claim Input Tax Credit to reduce their tax burden on expenses like rent, books, and materials.
- There is a bit more paperwork but clearer rules help everyone.
What About Online Education (EdTech)?
- EdTech companies pay GST between 12% and 18%.
- This can make online courses more expensive for students.
- However, these companies can also claim tax credits to reduce their costs.
Quick Summary
- Schools and government colleges are still tax-free under GST 2.0.
- Private coaching, online education, and private colleges pay GST at fixed rates.
- Education costs may rise a little due to GST, especially in the private sector.
- Institutions benefit from clear tax rules and input tax credits.
