A total of 16 government universities in Gujarat received notices demanding Goods and Services Tax (GST) at an 18% rate on affiliation fees, potentially imposing a significant financial burden on these institutions.

The notice could lead to an estimated ₹400 crore burden on the universities, with an additional 18% interest and 10% penalty. 

Affiliation fees are collected annually for administrative tasks such as conducting exams for colleges.

The notice is expected to affect approximately 2,500 colleges in Gujarat, impacting around 12 lakh students. This development may also result in a fee increase of up to 25% per student.

In response to the notice, the vice-chancellors of all universities have begun preparing a legal challenge at the Gujarat High Court. A Zoom meeting organized by Veer Narmad South Gujarat University discussed this potential course of action.

The universities believe that education should not be subjected to such tax burdens and plan to represent it to the Gujarat Education Minister.

The Sardar Patel University registrar confirmed receiving a GST notice demanding 18% GST on affiliation fees. If 18% interest and a 10% penalty are applied, the total amount could escalate to around ₹500 crore. This financial burden will ultimately fall on the approximately 12 lakh students studying in colleges across Gujarat.

The decision to levy GST on affiliation fees was made in the latest GST Council meeting.

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