The unprecedented growth in the number of management education institutions (MEIs) and the static demand requires the Indian MEIs to be quality conscious. This study investigated the service gap between expected and perceived service quality of students based on newly designed INSTAQUAL scale. The difference in perceptions of junior and senior students was also investigated. Gap analysis results highlighted the existence of negative gap between expectations and perceptions scores for dimensions and over all service quality. Though the study found no significant differences between junior and senior level students’ service perceptions, the expectations of service quality were observed to be different. The study recommends MEIs to develop service features based on individual segments needs and expectations to minimise service gap.