GST Council Recommends 18% GST on Affiliation Fees for Private Schools

By: Admin
September 13, 2024
Categories: Gst Council News | 4 Min Read

In its 54th meeting, the GST Council recommended an 18% Goods and Services Tax (GST) on affiliation fees charged by educational boards like PSEB and CBSE. This decision impacts private schools, requiring them to pay GST on affiliation fees going forward.

The move has been met with resistance from private schools, with associations already filing cases against the state government’s directive to impose GST on affiliation fees. The hearing is scheduled for October. The School Sangh expressed concern that this will increase costs for schools, especially when renewing affiliations.

For example, private schools seeking affiliation with the Punjab School Education Board (PSEB) must pay Rs 1.5 lakh, along with an additional Rs 27,000 in GST. Senior secondary schools must pay Rs 50,000 in affiliation fees and Rs 9,000 in GST.

While government schools are exempt from this tax, private schools are expected to comply. Some schools have secured a temporary stay in court, delaying their tax payments until further orders.

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