Lok Sabha Question No. 3789 (UNSTARRED), answered on 2025-03-24
Subject: Reduction of GST on Higher Education and Student Affordability
Ministry: FINANCE
Asked by: Shri Vishaldada Prakashbapu Patil

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA

UNSTARRED QUESTION NO.3789

## TO BE ANSWERED ON MONDAY, MARCH 24, 2025/CHAITRA 3, 1947 (SAKA)

## REDUCTION OF GST ON HIGHER EDUCATION AND STUDENT AFFORDABILITY

## 3789. SHRI VISHALDADA PRAKASHBAPU PATIL:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware that reducing GST rates on higher education and educational payments could significantly alleviate the financial burden on students;
- (b) if so, whether the Government has considered to reduce GST on higher education and related payments to the slabs 12%, 5% or 0%;
- (c) if not, the reasons for maintaining the current GST rates on educational services; and (d) whether any consultations has been made with stakeholders regarding GST reforms for the education sector particularly addressing the financial burden on students of tier-2 and tier3 cities such as Sangli where access to higher education is already constrained by economic factors?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a), (b), (c) & (d): GST rates and exemptions are prescribed based on the recommendations of  the  GST  Council,  which  is  a  Constitutional  body  comprising  members  from  both  the Union  and  State/UT  Governments.  Any  decision  regarding  change  in  rates/exemptions  or otherwise is made only after GST Council's deliberative process. Currently, no differential GST rates based on category of cities are in effect.

At present various exemptions provided under the GST framework to education sector are as under:

A. Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017

1. Sl No. 66:
- a. Services provided by an educational institution to its students, faculty and staff;
- b. Services by an educational institution by way of conduct of entrance examination.
- c. The following services provided to an educational institution:
- i. Services relating to admission to, or conduct of examination by, such institution;
- ii. If provided to pre-school or upto higher secondary school:
7.  Transportation of students, faculty and staff;
8.  Catering,  including  mid-day  meals  scheme  sponsored  by  the  Central Government, State Government or Union territory;
9.  Security  or  cleaning  or  housekeeping  services  performed  in  such educational institution;
- iii. Supply of online educational journals or periodicals (provided to higher educational institution);

'educational  institution'  has  also  been  defined  as  an  institution  providing  services  by  way of,-

- (i) pre-school education and education up to higher secondary school or equivalent;
- (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
- (iii) education as a part of an approved vocational education course;
2.  Sl  No.  66A:  Services  of  affiliation  provided  by  a  Central  or  State Educational  Board  or Council or any other similar body, by whatever name called, to a school established, owned or controlled by the Central Government, State Government, Union Territory, local authority, Governmental authority or Government entity.
- B.  Notification  No.  02/2017  -  Central  Tax  (Rate)  dated  28.06.2017  provide  exemption  to various items which are as under:
1. Printed books, including Braille books
2. Newspapers, journals and periodicals, whether or not illustrated or containing advertising material
3. Children's picture, drawing or colouring books
4. Slate pencils and chalk sticks
5. Slates

At  present,  there  is  no  recommendation  from  the  GST  Council  regarding  exemption  or clarification for any other educational service.

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