The administration of Dr Babasaheb Ambedkar Marathwada University (Bamu) has questioned the colleges regarding the 18% Goods and Services Tax (GST) imposed on affiliation fees.
The Central Board of Indirect Taxes and Customs (CBIC) levies GST on distinct services furnished via educational institutes.
Universities provide affiliation to colleges and collect affiliation fees. There was confusion regarding whether educational institutions were exempt from GST on affiliation fees.
Read Also: CBIC Sets 18% GST Rate on Affiliation Services to Colleges by Universities
Representations were been provided by different college unions with CBIC asking for clarification on imposing the GST on affiliation fees.
A circular was issued by the Central Board of Indirect Taxes on October 11, 2024, elaborating that an 18% GST rate applies to the affiliation services provided by universities to colleges.
Under the circular of CBIC, the colleges shall be required to pay GST on affiliation fees from July 2017 to December 22, 2024.
The university asked for the GST from the colleges for the same period. Within the jurisdiction of Bamu, the colleges are asked for an extension on the due date to pay the tax. Complying with the same, the due date to pay the GST was extended to May 10, 2025.
