Starting a Coaching Centre in Kolkata: GST at 18%, Trade Licence, Fire Safety, Income Tax and the Central Guidelines
Private tuition and coaching centres in Kolkata pay GST at 18% on fees once their turnover crosses ₹20 lakh a year. The GST exemption for education covers schools, recognised degree and diploma courses and approved vocational training, not private coaching for entrance exams, board exams or tuition. Coaching centres also need a KMC trade licence and shop registration, and larger centres need fire safety clearance. The Ministry of Education’s guidelines for coaching centres, issued in January 2024, ask states to register and regulate them; check how West Bengal applies them.
GST for coaching
| Service | GST |
|---|---|
| Coaching for JEE, NEET, WBJEE, civil services, board exams, tuition | 18% |
| Education by a school up to higher secondary | Exempt |
| Courses leading to a recognised degree or diploma | Exempt |
| Approved vocational courses (for example under the National Skill Development Corporation) | Exempt |
| Study material sold separately | Rate of the goods (printed books are exempt) |
| Online courses sold to Indian students | 18% |
Most coaching centres cannot avoid GST by tying up with a school or university unless the course itself leads to a recognised qualification.
Registration threshold
Register once aggregate turnover crosses ₹20 lakh in a year. A home tutor teaching a few batches may stay below it. Fees collected in advance for a course are taxable when received.
Licences in Kolkata
- KMC trade licence (Certificate of Enlistment) for the premises. See KMC trade licence.
- Shop and establishment registration. See shop and establishment registration in West Bengal.
- Fire safety clearance for larger centres and buildings.
- Signage permission where applicable.
Central coaching guidelines (2024)
The guidelines suggest registration of coaching centres, minimum facilities and space per student, no misleading advertisements, qualified tutors, counselling support, and pro-rata refund of fees when a student leaves midway. Several states have adopted them in their own rules. Even where not yet enforced, a clear written fee and refund policy avoids consumer complaints.
Income tax
Coaching income is business income. Small centres can use presumptive taxation under section 44AD, declaring 6% of digital receipts or 8% of other receipts as income. Most coaching centres have high rent and salaries, so regular books often show a truer picture. Pay TDS on rent and salaries where required.
Structure
Many coaching centres start as proprietorships. Once there are several branches, a partnership firm, LLP or private limited company makes it easier to bring in teaching partners and investors. See our guide to proprietorships in Kolkata.
FAQs
Is GST applicable on coaching classes in Kolkata?
Yes, at 18%, once the centre’s turnover crosses ₹20 lakh a year.
Is home tuition exempt from GST?
Not exempt as such, but a home tutor below ₹20 lakh turnover does not need to register.
Are school education services exempt?
Yes. Education by a school up to higher secondary is exempt.
TAXAJ handles GST, accounts and income tax for coaching centres and edtech businesses in Kolkata. Talk to our Kolkata team.
Last updated 11 November 2026. Sources: Notification 12/2017-Central Tax (Rate), entries on education services; CGST Act, 2017, section 22; Ministry of Education Guidelines for Registration and Regulation of Coaching Centres, January 2024. General information only.
