GST treatment of education vs coaching
India's GST regime distinguishes carefully between recognised education and coaching. Per CBIC Notification 12/2017 - Central Tax (Rate):
- Recognised educational institutions, services provided up to higher secondary (Class 12) are fully GST-exempt. This includes pre-school, primary, secondary, and senior secondary education by schools recognised by the appropriate government or board.
- University and college courses leading to a recognised qualification, also GST-exempt. UGC-recognised universities, AICTE-approved engineering colleges, MCI-recognised medical colleges, etc. The exemption covers tuition, examination, and other related services.
- Coaching institutes, 18% GST applies. JEE/NEET coaching, CA/CS/CMA prep, GATE coaching, civil-services coaching, IELTS/TOEFL prep, language classes, none are exempt.
- Online course platforms, 18% GST. UpGrad, BYJU'S, Coursera-India, Udemy India. Even when the course leads to a partner-university certificate, the platform itself is treated as a service provider.
- Vocational / skill development under PMKVY or NSDC partner schemes, exempt or zero-rated, with specific qualifying conditions per the relevant Notifications.
Section 80E, education loan interest deduction (FY 2026-27)
Section 80E of the Income Tax Act allows a deduction on the interest paid on an education loan for higher education, not on the tuition fee itself. Key features:
- Loan must be from a financial institution or approved charitable institution
- Loan must be for higher education (after Class 12)
- Borrower must be the individual (self), spouse, children, or legal guardian
- Higher education includes any course pursued after senior secondary, in India or abroad
- Deduction available for 8 years from the year repayment starts, or until interest is fully paid (whichever is earlier)
- No upper limit on the deduction amount
- Available only under the old tax regime. Salaried employees opting into the new regime under Section 115BAC cannot claim 80E.
The course receipts you submit to the bank are part of the loan disbursement process. The receipt itself doesn't go on your tax return, the loan-statement interest figure does.
Section 80C and tuition fees, limits
Section 80C covers school tuition fees for up to 2 children, paid to any India-situated full-time educational institution. It does NOT cover:
- Coaching institute fees
- Self-education fees (use 80E loan-interest instead)
- University/college fees for the taxpayer's own education
- Online course platform subscriptions
- Foreign-school fees
What the receipt must contain
- Institution name, address, registration / affiliation number, GSTIN (where applicable)
- Student name, age, parent/guardian name (if minor)
- Course name, batch, duration, mode (offline/online/hybrid)
- Admission number and academic year
- Fee head break-up, tuition, lab, library, exam, registration
- GST split (where applicable) as CGST + SGST
- Installment number, total course fee, paid so far, balance
- Mode of payment (UPI / cheque / bank transfer / card)
- Refund / cancellation policy reference
- Authorised signature
PAN of the institution
For annual course fees crossing ₹1 lakh, the institution's PAN should appear on the receipt. Banks processing Section 80E loans and employers with skill-reimbursement programs both check this.
Common mistakes
- Claiming coaching fees under Section 80C. Not eligible. Only school tuition for kids qualifies.
- Not charging GST on coaching when registered. 18% GST is mandatory for registered coaching institutes.
- Charging GST on a recognised university degree program. Should be exempt.
- Missing the institution PAN above ₹1 lakh. Holds up Section 80E loan disbursement.