GST Council recommends 18 per cent GST on affiliation fees from private schools

The recommendations of the 54th GST Council meeting have come as a jolt for the private schools affiliated with various boards such as the PSEB and CBSE. The council said the affiliation services provided by the educational boards were taxable. Consequently, the schools would have to pay GST on the affiliation fee from now on.

Punjab B Bhatt, general secretary, School Sangh, said one or two associations had already moved the High Court against the state government’s directions to the schools to pay 18 per cent GST on the affiliation fee and the hearing was reserved for October. “But in the meanwhile, the GST Council held its 54th meeting in Delhi and came up with the decision to impose tax on the affiliation fees. So, at this point we feel that the private schools will have to shell out more money when renewing affiliation,” Bhatt said.

The private schools affiliated to the Punjab School Education Board were already against the move as for getting new affiliation till September 15, the private school had to pay the affiliation fee of Rs 1.5 lakh and an additional amount of Rs 27,000 in GST. Senior secondary schools need pay Rs 50,000 in affliation fees and Rs 9,000 in GST on that.

A GST advocate Naveen Thamman, however, said one had to adhere to the new GST recommendations. “The directions are applicable to all the boards. However, the government schools are exempted,” Thamman said.

Dr Jagjit Singh Dhuri, from the Federation of Private School and Association of Punjab said they had moved the court against the GST decision and got stay in the case. “For the time being, we will not pay the tax but will have to follow the court’s orders,” said Dr Singh.