Key takeaways
What this article covers, in order:
- Isn't education exempt from GST?
- Do I have to register as a tutor?
- The coaching-specific GST questions
- Worked example: Vidya Classes, Patna
- Monthly or quarterly?
- How the free plan fits a tutor or an institute
Admissions for the next batch have opened, parents are paying fees by UPI at all hours, and a few of them are asking why there's GST on tuition when "education is exempt". It isn't, at least not for coaching. If your institute or tutoring business is GST-registered, HelloBooks files GSTR-1 and GSTR-3B for one GSTIN free, directly to the GST portal. Here's what GST means for coaching, from a single home tutor to a centre with a few hundred students.
Isn't education exempt from GST?
Partly, and that's where the confusion starts. The exemption covers services by an "educational institution" in the legal sense. That means schools up to higher secondary, and courses leading to a qualification recognised by law, such as a university degree. Certain government-approved skill programmes have their own specific exemptions too.
Private coaching isn't covered. Entrance exam preparation, tuition classes, spoken English, competitive exam coaching and online test series are all taxable at 18% under SAC 999293. That's 9% CGST plus 9% SGST, or 18% IGST where the place of supply is in another state. GST 2.0 in Sep 2025 didn't change that. Authorities and rulings have repeatedly treated coaching as outside the education exemption.
Do I have to register as a tutor?
You must register once your aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in the special category states).
A home tutor earning ₹8 lakh a year doesn't need to register, and shouldn't charge GST without a GSTIN. A coaching centre with 150 students paying ₹40,000 a year has turnover of ₹60 lakh and must register.
There's also a composition scheme for service providers, at 6% of turnover for those up to ₹50 lakh. But it bars inter-state supplies, which rules out online students in other states. And HelloBooks doesn't file composition returns (CMP-08 and GSTR-4).
The coaching-specific GST questions
Books and study material in the fee
If your fee includes notes, books and a test series, that's usually a composite supply where coaching is the main service. The whole fee is taxed at 18%. You can't split out the "books" part as nil-rated just because printed books on their own are exempt. If you genuinely sell books separately, as an optional purchase with a separate price, they're treated on their own.
Fees collected in advance
For services, GST is due on an advance when you receive it, unless the invoice has already been issued. Fees collected in Oct 2026 for a batch starting in Jan 2027 are taxable in the Oct 2026 return.
Refunds when a student drops out
If you refund part of a fee, issue a credit note to reduce the tax already paid. For FY 2026-27 fees, the time limit is 30 Nov 2027, or the date you file that year's annual return if earlier.
Online students in other states
For coaching sold to individuals, the place of supply is generally the student's location when you have their address on record. A Patna institute teaching a student in Pune online should charge IGST, not CGST and SGST. Collect addresses at admission. This is easy to get wrong once online batches grow.
Franchise fees
If you run a franchise of a bigger brand, the royalty you pay is a service at 18%, and you can claim the ITC on it.
Worked example: Vidya Classes, Patna
Neha runs an engineering and medical entrance coaching centre in Patna with classroom and online batches. She files monthly. Here's Oct 2026 (illustrative):
| Value | GST | |
|---|---|---|
| Classroom fees from Bihar students | ₹8,00,000 | ₹72,000 CGST + ₹72,000 SGST |
| Online batch, students in other states | ₹2,00,000 | ₹36,000 IGST |
| Advances for the Jan 2027 crash course | ₹1,00,000 | ₹9,000 CGST + ₹9,000 SGST |
| Output tax | ₹1,98,000 | |
| Classroom rent from a registered landlord | ₹1,50,000 | ₹27,000 ITC |
| Visiting faculty billing with GST | ₹1,00,000 | ₹18,000 ITC |
| Online ads and lead-generation | ₹50,000 | ₹9,000 ITC |
| Total ITC | ₹54,000 |
Neha pays about ₹1,44,000 in cash after set-off. Her salaried faculty carry no GST, which is why a coaching business pays a lot more cash GST relative to its fees than a trader would. Due dates are GSTR-1 by 11 Nov 2026 and GSTR-3B by 20 Nov 2026.
Every fee here goes to an individual, so in GSTR-1 it's reported as a B2C summary by rate and by state. That makes her GSTR-1 short even with hundreds of students.
Monthly or quarterly?
Under ₹5 crore, QRMP is available. You file GSTR-1 by the 13th after each quarter and GSTR-3B by the 22nd or 24th, depending on your state, and pay monthly through PMT-06 by the 25th. Coaching income is lumpy: admissions spike at the start of a session and fees often come in instalments. So some institutes prefer monthly returns to keep each month's tax matched to its collections. Either works.
How the free plan fits a tutor or an institute
HelloBooks Free covers 200 transactions a year and 2 users. Here's how that plays out in practice:
| Who | Likely fit |
|---|---|
| Registered individual tutor, around 10 students, monthly invoices | Around 120 sales entries plus a few bills, so Free usually fits |
| Small centre, 40 students, 3 instalments each, plus monthly bills | About 120 fee entries plus 60 to 80 bills, which is tight but possible |
| Institute with 150 or more students, monthly fees or instalments | Well over 200, so you'll want Pro |
Pro at ₹499/month removes the transaction cap and gives unlimited users with roles, so your front-desk staff can raise fee receipts without seeing the accounts. It also generates GSTR-9 ready to file, and covers every GSTIN of your entity if you open a centre in another state under the same PAN. Compare on the pricing page.
How HelloBooks helps
HelloBooks files GSTR-1 and GSTR-3B directly to the GST portal from inside the app. Fee collections via UPI, Razorpay, Cashfree, Paytm or PhonePe can be reconciled, with bank statement import for everything else. GSTR-2B reconciliation confirms that your landlord's and visiting faculty's invoices are claimable. AR aging shows which students are behind on instalments. Before you file GSTR-3B, you see the GST portal's own interest and late fee figure. And your CA can be invited into the same books to check the composite-supply and place-of-supply treatment.
If you'd like to understand the return itself, read our guide to GSTR-3B filing.
Coaching GST checklist
- [ ] Check turnover against ₹20 lakh, including online and summer batches
- [ ] Charge 18% under SAC 999293 once registered
- [ ] Treat study material bundled in the fee as part of the coaching fee
- [ ] Pay GST on advance fees in the month you receive them
- [ ] Capture student addresses for the inter-state place of supply
- [ ] Issue credit notes for fee refunds within the time limit
- [ ] Claim ITC on rent, ads and registered visiting faculty
FAQs
Is GST applicable on coaching classes?
Yes. Private coaching is taxed at 18%. The education exemption covers recognised educational institutions such as schools and degree-granting courses, not coaching centres.
Does a home tutor need GST registration?
Only once aggregate turnover crosses ₹20 lakh in the FY (₹10 lakh in the special category states).
Can I charge 0% on the books included in my course fee?
Usually not. If the books are bundled with coaching for a single fee, the whole fee is generally taxed at 18% as a composite supply.
Should I charge IGST to online students in other states?
Generally yes, when you have the student's address on record and it's in another state. Check unusual cases with a CA.
Is HelloBooks Free enough for a coaching centre?
For an individual tutor or a small centre, often yes. Larger institutes with many fee entries will need Pro at ₹499/month.
Get the place-of-supply right for your online batches early. It's much easier than fixing a year of CGST that should have been IGST.
Start free — GST filing included, no card. Try HelloBooks Free
