Colleges asked to pay 18 GST on affiliation fees since 2017

Chhatrapati Sambhajinagar: The administration of Dr Babasaheb Ambedkar Marathwada University (Bamu) asked the colleges to pay 18 per cent Goods and Services Tax (GST) levied on affiliation fees.

It may be noted that the Central Board of Indirect Taxes and Customs ( CBIC ) imposed GST on various services provided by educational institutes.

The universities give affiliation to the colleges and collect affiliation fees. There was confusion about whether educational institutions were exempt from the GST on affiliation fees. Different college unions made representations with CBIC seeking clarification on levying the GST on affiliation fees.

Central Board of Indirect Taxes issued a circular dated October 11, 2024, explaining that an 18 pc GST applies to affiliation services furnished via universities to colleges.

As per the CBIC circular, the colleges will have to pay GST on affiliation fees from July 2017 to December 22, 2024. The university sought GST from the colleges for this period. The colleges within the jurisdiction of Bamu requested an extension on the last date for paying the tax. Following this, the last date for paying GST was extended to May 10, 2025.