Karnataka universities reel under GST shocker
Government mandates higher education institutions to levy forward tax on college affiliation charges, sparking concern that escalating costs may ultimately burden students financially.
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Government mandates higher education institutions to levy forward tax on college affiliation charges, sparking concern that escalating costs may ultimately burden students financially.
The Bombay High Court, by its judgment pronounced on 27th April, 2026 in University of Bombay vs Union of India held that the collection of affiliation fees by the University does not attract the levy of GST since the activities of the University relating to the affiliation do not constitute ‘supply’ in terms of Section 7(1)(a) of the CGST Act, 2017.
The Hon’ble Karnataka High Court in Bengaluru North University & others held that fee collections by universities like affiliation fees, registration fees, and convocation fees do not amount to a “supply” or “business” under GST law, thus are not taxable.
The Private School Teacher’s Union, Joint Action Front, has written to the state education secretary, opposing the directive issued by Punjab School Education Board (PSEB) mandating 18% GST on continuation fees payable by PSEB e-affiliated schools for 2024-25 academic session.
Days after recommendations of the 54th GST Council meeting to bring private schools affiliated to state boards and CBSE under the GST net, the private school managements affiliated with the Punjab State Education Board have laid their hopes on the Punjab and Haryana High Court’s stay on the Punjab government’s decision to levy 18 per cent GST on the affiliation fee being paid by aided and affiliated schools.
Despite a request from the state’s public universities for exemption in levying Goods and Services Tax (GST) on the affiliation fees paid by colleges, the state’s tax authorities have refused to provide them with any respite.
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