Education & training: Get Paid From Abroad in India, Fast

Key takeaways

Indian tutors can receive international tuition quickly, cost effectively, and in full compliance by choosing the right collection method, issuing GST compliant invoices, and storing every e-FIRA certificate.
Local collection accounts for USD, EUR, and GBP are usually cheaper and faster than SWIFT, with settlements in 24 to 48 hours and near mid market FX.
Always use the correct SAC code on export invoices, file an LUT for zero rated supplies, and reconcile invoices to e-FIRAs monthly.
For a streamlined setup, many tutors prefer Karbon Business for virtual foreign currency accounts, automatic e-FIRA, zero FX markup, and flat fees.
Protect your revenue with clear refund rules, chargeback documentation, and incentives for low fee payment methods like ACH or SEPA.

Course payments from USA India: all the ways your students can pay you

If you teach students in the USA, UK, or Europe, you can offer multiple payment routes. The best choice balances speed, cost, and compliance so you receive every rupee you earn in India.

SWIFT or wire transfer to your Indian bank account

This traditional route works, but it is often slower and costlier than modern alternatives. Wires can take 3 to 5 business days to land, and intermediary banks may charge USD 20 to 40 per transfer. Your Indian bank may take another day or two to settle INR.

Non negotiable: collect a digital e-FIRA for every inward remittance. It is your proof of export earnings for RBI and GST.

For student side fee references, see MoneyHop’s university fee guide and Convera’s paying from India FAQs. You can also compare typical bank charges on ExTravelMoney’s university payment page.

Global wallets and aggregators

Wallets like PayPal and Payoneer offer convenient links and checkout in local currencies. The trade off is higher total cost, because platform fees plus FX markup often add up to 3 percent to 6 percent. Some wallets do not issue an Indian AD bank certificate per transaction, so confirm e-FIRA availability before you go live.

Local collection accounts for the US and EU

Virtual USD, EUR, GBP, or CAD accounts let students pay you using low cost domestic rails, ACH in the USA, SEPA in Europe, FPS in the UK. Once funds arrive, your provider converts at a transparent rate and settles INR within 24 to 48 hours, usually at a total cost near 1 percent or less.

Providers include Karbon Business, Wise Business, Payoneer, RazorpayX International, and Tazapay. Karbon Business focuses on Indian tutors and freelancers, with zero FX markup, a flat 1 percent platform fee, and automatic e-FIRA within 24 hours.

International card payment links

Cards are frictionless for B2C cohorts, and funds confirm instantly. Expect a higher MDR of 2 percent to 3 percent or more, along with chargeback risk for digital goods. Choose a processor that supports Indian exporters and issues e-FIRAs for every transaction.

Receive tuition fee in India, timelines, fees, FX, and documents

Timelines

With ACH, SEPA, or FPS into a virtual account, funds typically land in 24 to 72 hours. After you claim the payment, INR settlement to your Indian bank takes another 24 to 48 hours. End to end, expect 2 to 5 days, which is often faster than SWIFT wires that take 5 to 7 days.

Your total cost stack

Platform fee, percentage or flat
MDR for cards if used
FX markup versus mid market rate
Wire or intermediary fees if using SWIFT

A SWIFT wire may cost USD 30 in bank fees plus 1 percent to 2 percent FX markup. A wallet might charge 2.5 percent platform fee plus 2 percent FX spread. A virtual account provider like Karbon Business charges a flat 1 percent with zero FX markup, which can materially reduce cost on large tickets.

Key documents to collect and keep

GST export invoice with the correct SAC code, foreign buyer details, currency, and exchange rate.
An e-FIRA or AD bank certificate for every inward remittance.
A payment roster mapping student, invoice, and e-FIRA.
Refund policy and refund logs, if any.

Store these for at least six years, RBI and GST audits require invoice to e-FIRA matching.

Purpose codes and e-FIRA

Your bank or provider tags each inward payment with an RBI purpose code. Tutors and coaches are typically classified as export of services. Keep every e-FIRA safe, it is essential for GST filings and tax queries.

Red flags to avoid

Platforms that do not issue individual e-FIRAs.
Hidden FX rates where the mid market benchmark is not visible.
Non compliant setups without an Indian AD bank relationship.

For more background on student remittance flows and costs, cross check MoneyHop’s guide and Convera FAQs.

SAC code education services India, invoicing, GST, and export basics

Choosing your SAC code

Education services are grouped under 9992. Most tutors use one of these:

999293: Commercial training and coaching services, ideal for live cohorts and one to one coaching.
999294: Other education and training services n.e.c., suitable for purely pre recorded content.

When your model is mixed or digital heavy, consult a CA to confirm treatment, including OIDAR nuances.

GST registration

Register if your turnover exceeds INR 20 lakh in most states, or 40 lakh in special category states. Voluntary registration can help with input tax credits and credibility.

Export of services is zero rated

When students are outside India and pay in foreign currency, you charge 0 percent GST. To avoid paying IGST and claiming it back, file a Letter of Undertaking, LUT online, renewed annually.

Invoice essentials

Your GSTIN, if registered
SAC code, for example 999293
Student name, address, and country
Currency, amount, and exchange rate used
A note such as “Export of services, zero rated supply”

Pair each invoice with its e-FIRA when filing GSTR 1 and during reconciliation.

B2B vs B2C, OIDAR considerations

Rules for selling to foreign companies differ from selling to individuals. Pre recorded access may be OIDAR. Discuss edge cases with a CA experienced in export and digital services.

Step by step, set up, invoice, collect, and settle INR with e-FIRA

Step 1: Choose an RBI compliant partner

Prefer providers offering virtual USD, EUR, GBP, or CAD accounts and automatic e-FIRA. Consider Karbon Business for flat 1 percent fees, zero FX markup, and 24 to 48 hour INR settlements. Complete KYC with PAN, Aadhaar, recent bank statements, and an online profile. Activations typically finish in 2 to 4 working days.

Step 2: Price your course in USD or EUR

Price in the learner’s currency to reduce friction. Document refunds, payment plans, and early bird offers in your terms.

Step 3: Generate invoices or payment links

Include the SAC code, the foreign currency amount, and either virtual account details for ACH, SEPA, FPS, or a card link. With Karbon Business, invoices display US bank details in your name, which helps students make low fee domestic transfers.

Step 4: Collect payment

ACH, USA: typically 1 to 3 business days, often zero sender fee.
SEPA, Europe: 1 to 2 business days, low or zero fee.
FPS, UK: same day or faster, usually low fee.
Cards: instant confirmation, higher MDR for you.
SWIFT: slowest and costliest, use only if needed.

Step 5: Claim and settle INR

After funds reach your virtual account, mark as paid. The provider converts at the published mid market rate and pushes INR to your Indian bank, usually within 24 to 48 hours.

Step 6: Receive e-FIRA and reconcile

Download each e-FIRA and map it to its invoice. A simple monthly spreadsheet with invoice number, student, SAC, foreign amount, INR settled, and e-FIRA number keeps GST filings stress free.

Pricing, refunds, chargebacks, and scholarships

Smart policies protect revenue and student trust.

Refund timelines: for example, full refund up to 7 days before start, 50 percent up to 2 days before, none after start.
Installments: split larger fees into two or three payments to improve conversions.
Method incentives: offer a small discount for ACH or SEPA to offset your card MDR.
Scholarships: invoice the final discounted amount, keep records clean for e-FIRA reconciliation.
Chargeback defense: collect acceptance of terms, attendance logs, access records, and respond promptly to disputes.

Quick checklist before you open enrollment

Offer at least one low fee local method, ACH, SEPA, FPS, to receive tuition fee in India, international.
Use the right SAC code education services India, 999293 or 999294, on every invoice.
Ensure you receive an e-FIRA for every inward remittance.
File an LUT to make zero rated supplies without paying IGST upfront.
Know your platform fee, MDR, and FX markup so your pricing covers costs.
Confirm INR settlement timelines, ideally under 48 hours after funds arrive.

Bringing it all together

Learning how tutors get paid from abroad India becomes simple when you combine low cost collection rails, GST compliant invoicing, and rigorous documentation. Choose a provider that issues automatic e-FIRAs, use the correct SAC code on zero rated export invoices, reconcile monthly, and publish clear refund and chargeback policies.

For tutors who want virtual USD, GBP, EUR, and CAD accounts, automatic e-FIRA within 24 hours, mid market FX with zero markup, and 24 to 48 hour INR settlement, Karbon Business is a strong fit, built for Indian freelancers and cohort creators.

FAQ

How to get paid from US students in India without using PayPal?

Use a provider that gives you virtual USD, EUR, or GBP accounts with domestic rails like ACH or SEPA. Karbon Business is popular with Indian tutors because it offers local collection details, zero FX markup, a flat 1 percent fee, and automatic e-FIRA. Students pay like a local bank transfer, you receive INR in 24 to 48 hours.

Which is better for Indian tutors, ACH via a virtual account or SWIFT wire?

ACH via a virtual USD account is usually cheaper and faster for you and your student. Expect 2 to 5 days end to end, with transparent FX and no intermediary bank fees. SWIFT wires take longer, often 5 to 7 days, and suffer from correspondent charges plus FX spreads. If the student insists on SWIFT, ensure you receive an e-FIRA for compliance.

Can I raise invoices in USD and still be compliant with GST rules?

Yes, you can invoice in foreign currency for export of services. Include the SAC code, the USD amount, and the INR value using the applicable exchange rate on the invoice date. Mark it as “Export of services, zero rated supply,” and later reconcile that invoice to the matching e-FIRA. Tools provided by Karbon Business help you keep invoice and e-FIRA pairs organized.

Do I really need an e-FIRA for every international payment as a freelancer tutor?

Yes, e-FIRA is your official proof that foreign currency entered India against export of services. You need it for GST filings, income tax queries, and for RBI and FEMA compliance. Choose a provider that auto issues the document, for example Karbon Business sends e-FIRA within about 24 hours of settlement.

What SAC code should I use for live coaching versus recorded courses?

Use 999293 for commercial training and coaching, this covers live or interactive cohorts and one to one sessions. Use 999294 for education and training services not elsewhere classified, suitable for purely recorded content. When in doubt, default to 999293 or consult a CA for OIDAR cases, then document your decision on each invoice.

Do I need to register for GST if most of my students are outside India?

You must register once your total turnover crosses the threshold, generally INR 20 lakh, or INR 40 lakh in special category states. Even below that, many tutors opt for voluntary registration to claim input tax credit and to appear more credible to enterprise clients.

What is LUT, and should I file it if I am exporting tutoring services?

An LUT, Letter of Undertaking, lets you supply exports at 0 percent GST without paying IGST and waiting for a refund. Filing the LUT for zero rated services is simple, done online, and renewed annually. It improves cash flow, especially for high value cohorts.

How long does it take for ACH or SEPA payments to reach my Indian bank account?

ACH payments show up in your virtual USD account in about 1 to 3 business days, SEPA arrives in 1 to 2 days. After you claim the payment, providers like Karbon Business settle INR to your Indian bank within 24 to 48 hours. Total time is commonly 2 to 5 days.

Can I hold USD before converting to INR to time the exchange rate?

Many providers allow you to hold balances for a limited period, for example up to 60 days, so you can batch conversions or wait for a better rate. Karbon Business supports currency holding to help tutors reduce FX volatility risk, then converts at a mid market rate with zero markup when you settle.

How to handle refunds and chargebacks for international cohort payments?

Refund via the original channel, card to card, ACH back to the payer’s bank, and issue a GST credit note to adjust your export figures. For chargebacks, respond quickly with your terms, attendance logs, and proof of course delivery. Clear refund windows, for example full refund up to 7 days before start, reduce disputes. Providers like Karbon Business can surface payment timelines that help you respond within network deadlines.

Is Karbon Business RBI compliant and safe for receiving international payments as a freelancer?

Yes, Karbon Business operates with Indian AD bank partners and follows RBI and FEMA rules. It issues e-FIRA for each inward remittance, supports audit ready documentation, and is ISO and security certified. Always complete full KYC and use your own dedicated receiving details, not pooled accounts without documentation.

How do I price my course to cover platform fee, FX, and card MDR without shocking students?

Estimate your all in cost: provider fee, MDR if you expect card usage, and FX markup. For example, with a flat 1 percent and zero FX markup on Karbon Business, a USD 1,000 cohort costs about USD 10 in platform fees plus bank transfer charges if any. If you accept cards at 2.9 percent, either add a small premium to the card option or give a 2 percent discount for ACH or SEPA to nudge students toward low fee methods.

Written by

Swati Saraf