A GST notice demanding ₹1.65 crore from Pt. Ravishankar Shukla University (PRSU) has caused a stir among affiliated colleges across Chhattisgarh. The notice, issued by the Office of the Assistant Commissioner of State Tax, seeks Goods and Services Tax (GST) on affiliation fees collected from colleges between July 2017 and March 2024.
According to the notice, the university received ₹3.55 crore in affiliation fees from affiliated colleges during the specified period, of which ₹1.65 crore has been calculated as GST payable. This unexpected demand has led to intense deliberations among college managements and university officials.
On Tuesday, PRSU held an urgent meeting with college principals to discuss the issue. The matter has also been placed before the university‘s Executive Council for further consideration. Colleges, taken aback by this, are now exploring their options to address the financial implications.University Registrar Shailendra Patel stated, “We were unaware that affiliation fees attract GST. We have requested the GST office to waive the interest component included in the demand. Alternatively, we have proposed that the GST payment be enforced only from 2025 as per regulations.”
He also revealed that the university has informed the Departmental Secretary about the issue, highlighting that there is no separate fund available to cover affiliation-related expenses. If necessary, colleges may be required to pay the GST retrospectively.This development has sparked anxiety among colleges already grappling with limited budgets. Many principals expressed concern over the financial burden this additional expense might impose on their institutions.
The issue has underscored a lack of clarity about GST applicability in the education sector, particularly regarding affiliation fees. While the university seeks relief, the final resolution remains uncertain, leaving affiliated colleges bracing for potential financial challenges. This controversy aslo highlights the critical need for universities and educational institutions to stay informed about tax regulations, ensuring compliance and avoiding such disruptive financial surprises in the future.
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