The 54th GST Council has ruled that private schools must pay an 18% Goods and Services Tax (GST) on affiliation fees charged by boards like PSEB and CBSE. This decision has led to immediate opposition from school associations, with some already challenging the directive in court. While government schools are exempt, private institutions are anticipating higher costs, particularly during affiliation renewals.
The 54th GST Council meeting brought an unexpected blow to private schools affiliated with boards such as the Punjab School Education Board (PSEB) and the Central Board of Secondary Education (CBSE). The Council declared that the affiliation services provided by these boards are taxable, mandating private schools to pay GST on their affiliation fees moving forward.
This decision has already sparked opposition, with several school associations, including the School Sangh, moving to the High Cour
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FAQ :
The GST Council has imposed an 18% GST on affiliation fees for private schools.
Private schools affiliated with boards such as the Punjab School Education Board (PSEB) and the Central Board of Secondary Education (CBSE) are affected.
No, government schools are exempt from this GST rule.
For new affiliation with PSEB, private schools pay Rs 1.5 lakh in affiliation fees plus Rs 27,000 as GST. Senior secondary schools pay Rs 50,000 in affiliation fees and Rs 9,000 in GST.
Yes, several school associations, including the School Sangh, have moved to the High Court to challenge the directive. The Federation of Private School and Association of Punjab has secured a court stay.
A hearing for the legal challenge is set for October.