Where coaching discounts leak money
- Counsellors offer extra discount to close an admission, with no record of who approved it.
- Discounts stack: a scholarship, an early-bird offer and a sibling discount all applied to the same student.
- The discount is noted on the admission form but not in the fee system, so reminders go out for the wrong amount and the parent stops trusting your numbers.
- Conditional scholarships (keep 85% attendance, stay above a test-score cut-off) are never re-checked, so they continue for the whole course.
- Nobody reports the total discount given, so the real fee per student is unknown.
A scholarship slab structure you can publish
| Basis | Example slab | Applies to | Stacks with |
|---|---|---|---|
| Scholarship test score | 90%+: 50% · 75–89%: 30% · 60–74%: 15% | Tuition only | Nothing |
| Early-bird admission | 10% before a fixed date | Tuition only | Sibling only |
| Sibling enrolled | 5% on the second child | Tuition only | Early-bird only |
| Ex-student / repeater | 10% on the next programme | Tuition only | Nothing |
| Need-based | Case by case, centre head approval | Tuition, optionally hostel | Nothing |
Publishing the slabs in the prospectus also helps with the 2024 coaching guidelines, which expect fees and terms to be disclosed up front. Advertise scholarships as discounts on a published fee, not as guarantees of results.
Approval rules that stop ad hoc discounting
- Counsellors can apply published slabs only, with the test score or proof attached.
- Any discount above the published slab, or any stacking outside the table, needs the centre head's approval in the system.
- Need-based waivers above a set amount need the owner's approval and a written reason.
- Discounts are applied before the first installment is generated, never as a later "adjustment".
Conditional scholarships: write the condition into the plan
If a scholarship depends on attendance or test performance, set the review dates when you set the installments, for example at the end of each term. On review, either keep the discount or move the remaining installments to the full fee, and tell the parent in writing before the next due date.
Never withdraw a scholarship retroactively for months already paid. Change only future installments, and make sure the condition and review dates were in the admission terms the parent accepted.
GST and reporting on discounted fees
- A discount shown on the invoice at the time of supply reduces the taxable value, so 18% GST is charged on the fee after discount.
- Track three numbers every month by batch and branch: list fee, discount given and fee collected. The gap between list and collected is your true discount plus your defaults.
- Review discount by counsellor. A counsellor with much higher average discount than the rest is usually closing on price, not on fit.
Every discount on record, every installment correct
- Discount and scholarship slabs set at the fee-structure level, so installments and reminders always show the right amount.
- Each discount stored with its reason and who approved it.
- Discounts applied before GST on every invoice, with the SAC and tax split handled automatically.
- Reports of list fee, discount and collection by batch, branch and counsellor.
Frequently asked questions
How should a coaching institute structure scholarship discounts?
Publish fixed slabs based on clear criteria such as scholarship test score, early-bird admission, sibling enrolment and ex-student status, apply them to tuition only, state which ones can be combined, and send anything outside the published slabs to the centre head for approval.
How do coaching centres stop revenue leakage from discounts?
Limit counsellors to published slabs, require a recorded approval for anything extra, cap stacking, apply discounts to the fee structure before installments are generated, and review discount given against fee collected by batch, branch and counsellor every month.
Is GST charged on the full fee or the discounted fee?
When the discount is shown on the invoice at the time of supply, GST is charged on the fee after discount. A ₹1,00,000 course with a 30% scholarship is invoiced at ₹70,000 plus 18% GST.
Can a coaching scholarship be withdrawn mid-course?
Only if the condition and review dates were in the admission terms, and only for future installments. Do not recover discount on months already paid, and inform the parent in writing before the next due date.
Which software manages coaching scholarships and discounts?
FastFee manages coaching scholarships and discounts inside the fee plan: slabs are set per course, each discount is stored with its approver, installments and reminders recalculate automatically, GST is applied after discount, and reports show discount and collection by batch, branch and counsellor.
Related coaching fee guides
Discount slabs on this page are illustrative examples, not benchmarks. Confirm GST treatment of discounts with your chartered accountant.