GST 2.0: Will school fees also receive GST relief? Learn about the GST rates on other education fees..

GST 2.0: Recently, the central government took a major decision to simplify the tax system. Under this, the five GST slabs (0%, 5%, 12%, 18%, and 28%) were reduced to 5% and 18%, making significant changes to the tax system. This means that instead of five slabs, GST has been reduced to two. This is being called the new GST 2.0 system in the country, which came into effect on September 22nd.

In this context, let's understand whether school fees are subject to GST. If so, how much relief will parents receive from the implementation of the GST 2.0 system? What was the GST applicable to which education fees, and how much will it be?

School and college fees are still tax-free
The biggest relief for parents is that their children's school and college fees are not included in any slab in the GST 2.0 system. This means that, as before, admission fees and monthly tuition fees will remain tax-free.

As before, GST exemption will continue on fees paid for government and private schools (pre-school to 12th grade), university degree programs and accredited courses, school transport services and mid-day meals, and training programs approved by the National Skill Development Corporation (NSDC).

School Notebooks and Supplies Become Cheaper
After the implementation of the GST 2.0 system, students and parents will see the biggest benefit in the purchase of school notebooks and stationery. Previously, many items were taxed at 12%, but now this has either been completely eliminated or reduced to 5%. Notebooks and exercise books, pencils and erasers, maps and globes, and educational charts now attract 0% GST, compared to 12% previously. Geometry boxes and math tools, along with other educational accessories, will now attract 5% GST, compared to 12% previously.

Coaching Classes Remain Expensive
While regular tuition fees may not be taxed, coaching classes and online courses will continue to attract the same 18% GST. This will particularly impact students preparing for competitive exams. JEE/NEET coaching, online edtech courses, private tutoring, and test preparation classes will be taxed at 18%.

Good News on Skill Training
The government has again made NSDC-accredited skill development courses completely tax-free. These courses were taxed for a short period at the end of 2024, but now the exemption has been reinstated. This will directly benefit millions of young people who pursue skill courses to secure jobs and careers.

Who will benefit, and who will not?
Parents who purchase notebooks and stationery for their children, students pursuing skill training, and schools that have to spend on stationery will benefit.

There is no change in school and college fees; government schools are not affected anyway.

Families taking coaching for competitive exams and students pursuing unrecognized online courses will suffer losses.

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