Did You Know That You Can collect GST For Online Education?

We all are aware of the GST rule. Last July Indian Government has replaced all the taxes on goods and services with the Goods and Services Tax; in a more “One tax to replace all” manner. But did you know that if you are an online teacher, you can also charge GST for the online education, that you offer? Yes, you heard me right. As per the GST rulebook states, any coaching institutes are also eligible to charge GST on the course sale.

GST for Online Education

Goods and services tax has been introduced in last July. It says that, if you are offering any service to anyone or you are selling any sort of goods then you can charge GST. Now you might be wondering that how teaching can involve GST too. Well, this is where I will first explain it to you and oh I have another great news for you. The other news will surely take you to the edge of your seat. Let me first tell you about the GST.

So as per the recent disclosure, online training institutes have also been listed in the services section.

GST on Online Education

As you can see in the above image, all the kinds of teaching, have been included in the list. And that means you can collect GST from your learners, to compensate for the GST that you have to pay. (You can see the full list here).

Special News:

Now, since I have promised special news, I guess it’s time to break the news to you. Initially, it was decided that businesses with turnover above 20L can register for GSTIN. But in the revised model the limit has been removed and now you can apply for GSTIN. That means if you are in the middle tier of the teaching business where you are getting software assistance for your online school and then teaching the students, then you can claim the input GST, irrespective of your annual turnover. Isn’t this the news you were waiting for since the announcement of GST?

Becoming GST Compliant with Learnyst

We at Learnyst take care of your technological needs, but our relationship just doesn’t end there, right? So when we heard of these new changes we have proactively developed the GST compliant checkout page for your learners. If you have registered your business for GSTIN then you can easily charge the GST from your learners.

GST compliant checkout page

So if you are an online educator or test prep institute then you can sign up on the Learnyst platform and easily become GST compliant.

If you have any doubts or questions on how to add GST to the online course. feel free to drop your comments below.

About Ranjan

14 thoughts on “Did You Know That You Can collect GST For Online Education?”

  1. If I start online training and I do not register for GSTIN , and do not collect GST from my learners and turnover is also lower than 20 lac , is it still necessary or optional to go for a GSTIN.

  2. hello sir
    i am going to start with online tutoring business. I am the only one involve in this business. and i don’t know how will the response. basically am a teacher so wanted to grow in this field only. i want some of the suggestions from your side. what i will be requiring and do i have to register for GST. am going to i have my own websites but still require more info about this.
    sir, can you help me with this?
    sukanya jagtap

    1. If the turnover is less then 20lac is optional, or if turnover is over 20 lac then GSTIN is mandatory. You are new to teach online there is no mandatory to apply GST, you can tryout the Learnyst.com to make a website and build an online teaching.

      1. Sir , I have few queries?

        1. I am starting a website where online course will be available,student can pay and take course and get a certificate. As student of different state will take that course? Do I need gst mandatorily because Turnover is not exceeding 20 lalh

        2. If I upload courses of my friend and pay them 50% then there will be any problem?

        3. As I am sole proprietor,Is there is compulsory registration or it is advisable to register?

        1. Hi Yash,
          Please find the answer to your questions.
          1. If you haven’t registered for a GST before & if you are making less than 20lakhs per annum, then you don’t need a GST. Even if you are a solo proprietor or even if you have students purchasing your course from other states.

          2. If you want to sell your friends course in your academy and split the course sales, it is fine as long as it is ok between both of you.
          3. Please refer answer 1 above. As long as your income is less than 20lakhs, no need of GST.
          – GST tax will become applicable only if you are making >20lakhs
          – You have already registered for GST number

  3. Hello sir,

    We are going to purchase recorded video lectures from another company and will sell to the customer through our website.
    Is this considered as OIDARS service?
    nd is it optional for applying GSTIN, if our turnover is below 20 lacs ?

    1. Hi Pavan,
      To answer your first part, yes. It will come under OIDAR services. Any service listed below will come under OIDAR

    2. Advertising on internet
    3. Providing cloud services (Google Drive)
    4. Provision of e-books, movie, music, software and other intangibles via internet (Hotstar, Amazon Prime Video)
    5. Providing data or information, retrievable or otherwise, to any person, in electronic form through a computer network;
    6. Online gaming (Steam)
    7. To answer your 2nd part, yes. as of now if your turn over is less than 20 lacs, its optional to apply for GST

  4. I am making app for nursery kids and it will be paid. I will be launch in next month. Do I need to register for GST number.

    1. Hi Paran,
      As of now, if you are just starting out & if your selling courses from your website, GST number is not required for upto course sales worth 20Lacs

  5. Hi i already have a gst number as sole proprietorship.
    I have website through that I sell my onlinencourses and turnover is not more then 20lakhs in a year.
    My question is that
    do I have to still file for gst return
    or it is oke if I just show nill
    Or should I close the gst number.
    Why do I ask this coz I don’t make much profit from this and I pay more then what I make to an accountant and consumes my time and money. So I was thinking what will be the best solution for me.
    Now I starting to learn how to pay return for gst, which is also time taking. Coz I feel I could invest my time in something else if I’m. Not really exceeding 20lakhs .
    Please help me. Thank you

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