MU gets notice seeking Rs.17 cr towards pending GST on affiliation fees
The development comes even as the Goa bench of the Bombay high court on Tuesday struck down the department’s attempts to levy GST on Goa University, saying education was a non-commercial activity that fell outside the ambit of the CGST Act
Mumbai: The Central Goods and Services Tax (CGST) department has served a notice to the University of Mumbai (MU) seeking payment of a staggering Rs.16.9 crore towards GST dues dating back to 2017. Other public universities in the state have also received similar notices seeking GST on affiliation fees with retrospective effect.
The development comes even as the Goa bench of the Bombay high court on Tuesday struck down the department’s attempts to levy GST on Goa University, saying education was a non-commercial activity that fell outside the ambit of the CGST Act.
Some universities in the state, including MU, have filed appeals with the GST commissioner, requesting an exemption. They have also approached the state government to seek relief from the tax burden.
On Friday, vice-chancellors of various affected universities met the state education minister to discuss the matter. One vice-chancellor, who spoke to HT on condition of anonymity, confirmed that the state government had assured them of taking up the matter with the Centre.
MU currently has over 850 affiliated colleges, each of which pays an affiliation fee to the university. The fees comprise a significant part of the university’s revenue and are often used to fund student welfare programmes.
The university has so far declined to comment officially on the CGST department’s bid to levy GST on affiliation fees. But sources in the university told HT that it was preparing to challenge the notice. The appeal will be submitted to the commissioner of Central GST and Central Excise, with the university arguing that as a government institution, it should be exempt from paying GST on affiliation fees, the sources said.
