GST invoicing for online courses in India: what your LMS must do

If you are registered for GST and sell online courses in India, each sale needs a tax invoice that shows the right tax split, carries a unique number in sequence, and can be corrected with a credit note when you refund. Doing this by hand for every enrolment does not scale, so your learning platform should issue the invoice at the moment of payment. This guide explains how the pieces fit together and what to check in an LMS before you sell.

Two notes before we start. First, this is general information, not tax or legal advice. Rates, thresholds and rules change, so confirm every point with a chartered accountant. Second, Cloudgramam sells an LMS with GST invoicing, so we have an interest in this topic. We explain what the product does, and where it does not do something, we say so.

Do you need to charge GST on online courses?

It depends on whether you are required to register and on what exactly you sell. Many businesses that sell online courses are treated as service providers, so once they are registered, GST applies to their sales. Some educational services are exempt under specific conditions, and registration depends on your turnover and your state. The rate and the service code that apply to your courses are for your accountant to confirm. Do not copy them from a competitor's invoice.

What does a GST tax invoice for a course sale contain?

The GST rules set out the required fields, and your accountant has the exact list for your case. In practice a tax invoice for a course sale shows:

• Your business name, address and GSTIN.
• A unique invoice number and the invoice date.
• The buyer's name, and their GSTIN if they are a business.
• A description of what was sold and its service code.
• The taxable value, the tax rate and the tax amount, split into CGST and SGST or shown as IGST.
• The place of supply and the total amount.

A good LMS fills these in from the order, so nobody retypes them.

How do CGST, SGST and IGST work for a course sale?

GST is split depending on where the buyer is. When the sale is within your own state, the tax is shown as CGST plus SGST, half to the centre and half to the state. When the buyer is in a different state, it is shown as IGST. For online sales this comes down to comparing your state with the buyer's state, so the platform needs to know the buyer's state at checkout. Your accountant can confirm how place of supply applies to what you sell.

How should invoices be numbered?

Invoice numbers must be unique and run in sequence within a financial year, which runs from April to March. Gaps and duplicates cause trouble at audit time. One practical point many sellers miss: test orders must not use up your real numbers. A platform that keeps a separate numbering series for test payments lets you try the whole checkout before launch without disturbing your real sequence.

What happens when you refund a student?

You do not edit or delete the original invoice. You issue a credit note against it, for the full amount or for part of it. A credit note has its own number series and records the refund for tax purposes. It does not send money back, so you also refund the student through your payment provider. Make sure your LMS issues credit notes, and that it can do a part refund as well as a full one.

What about business buyers and e-invoicing?

When a company buys a course for its staff, it will want its GSTIN on the invoice so it can claim the tax paid. Your checkout should let a business buyer enter a GSTIN and company name, and treat those sales separately from sales to individuals.

E-invoicing, where business sales are reported to the government's invoice registration portal, applies only to businesses above a turnover limit that the government sets and revises. Ask your accountant whether it applies to you before you build it into your process.

Should course prices include GST?

Most course sellers show one price to consumers that already includes tax, so the invoice works backwards to show the tax inside the price. Some sellers show a price plus GST instead. Check which approach your platform supports, because switching later affects every price and invoice you issue.

What should you check in an LMS before you sell?

1. Does it issue a tax invoice automatically for every confirmed payment, and for every subscription renewal?
2. Does it choose CGST and SGST or IGST from the buyer's state?
3. Can a business buyer enter a GSTIN and company at checkout?
4. Are invoice numbers sequential per financial year, with a separate series for test orders?
5. Can you issue full and part credit notes with their own numbers?
6. Can the buyer download the invoice as a PDF?
7. Can you export a register of invoices and credit notes for your accountant?
8. Does it support both tax-inclusive and tax-exclusive pricing, or only one?

What does Cloudgramam LMS do for GST?

• It issues one numbered GST tax invoice for each confirmed payment and for each subscription renewal.
• It shows CGST and SGST or IGST by the buyer's state, and lets a buyer add a GSTIN and company at checkout.
• The buyer and the administrator can both download the invoice as a PDF, and you can export a GST register as a CSV file for your accountant.
• Numbers run in sequence per financial year, with a separate TEST series in test mode.
• An administrator can issue full or part credit notes with their own number series, a PDF for the buyer and a credit note register. Remember to refund the student separately through your payment provider.
• Optional e-invoicing: for a business sale, an administrator can report the invoice, or its credit note, through your GST Suvidha Provider, and the reference number and signed QR code that come back are printed on the PDF.

Limits to know about. Prices are treated as tax-inclusive, and tax-exclusive pricing is not included. The e-invoicing connection has been tested against a simulated service, not against a live provider, and cancelling an e-invoice reference is not included, so during setup we run it with your own account in test mode before you go live. Filing your GST returns stays with you and your accountant. Check the service code and rate for your courses with your accountant.

Payments run through Razorpay, Stripe or PayPal, into your own account. Stripe charges are in INR only. For what the LMS costs, see our LMS pricing guide for India, and for how self-hosting works, our self-hosted LMS guide. The full feature list is on the Cloudgramam LMS page.

Frequently asked questions

Is a GST invoice mandatory for online course sales?

If you are registered for GST, you need to issue a tax invoice for your taxable sales. Whether you must register depends on your turnover and your state, so check with your accountant.

Can an LMS file my GST returns?

No. An LMS creates the invoices and a register of them. Filing returns is done by you or your accountant. A register export saves them from rebuilding the data.

What is the difference between an invoice and a credit note?

An invoice records a sale and the tax charged on it. A credit note is issued later against that invoice to record a refund or reduction. It has its own number and does not move money.

Do I need e-invoicing?

Only if your business is above the turnover limit the government sets for it, which can change. Ask your accountant. If it applies, your LMS needs to be able to report business sales to the invoice registration portal.

How are test payments handled?

In Cloudgramam LMS, test-mode payments use a separate TEST invoice series, so they never use up your real invoice numbers or appear in your GST register.

Can I show prices without GST and add it at checkout?

Cloudgramam LMS treats prices as tax-inclusive and works out the tax inside the price. Tax-exclusive pricing is not included.

Want to see the invoices and credit notes on a live demo? Book a demo of Cloudgramam LMS and we will walk through a test purchase, the invoice and a refund.