Kumari Palany & Co

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GST exemption for 26 universities

Posted on: 23/Nov/2017 11:38:12 AM
In the next GST meet, the Tamil Nadu government is set to share a note, requesting fees exemption that are collected by 26 heads by universities, as per the Goods and Services Tax rule.
 
Tuition fees, lab fees, library fees, funds collected towards affiliation and inspection, funds received towards research activities that dont lead to research output, services offered to the governments, purchases pertaining to academic needs, etc. are included in the list of fees that is to be requested for exemption.
 
At present, there is no exemption of GST for higher education institutes or public institutions.
 
The higher education department discussed with the central excise commissionerate in Madurai and has come up with the note that is forwarded to the commercial taxes department. This note seeks data regarding service charges charged towards fees in the past 3 years, and the reason for not paying out service tax. The universities are concerned that there may be retrospective service tax collection together with GST.
 
It is argued that the government has substantially subsidized higher education. This is to benefit the whole mass and imposing tax may make education out of reach for most.