Private schools move court against GST on affiliation fee

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.

While 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.

Meanwhile, the private affiliated and aided schools in Punjab have already moved High Court against the imposition of 18 per cent GST on affiliation fee, ie Rs 50,000 for three years that the schools had already paid last year.

“The private schools are putting an argument that the schools are already paying affiliation fee full in advance and putting any sort of additional tax on the affiliation fee would ultimately result in burning a hole in the pocket of parents. Ninety per cent of private PSEB affiliated schools in state are catering to the education needs of students from economically low families.The average fee being charged in any PSEB affiliated school is between Rs 700- Rs 1000. Further taxation on education will make survival of these schools difficult,” said Kamaljot Singh, president, Recognised and Affiliated Schools Association.

The private schools have now pinned all their hopes on High Court’s stay on the current decision.