Rajasthan Technical University collected fees of Rs 23 Cr; But GST of Rs 4.26 Cr not deposited

The Central Goods and Services Tax Commissionerate has registered a case against Rajasthan Technical University (RTU) quota for non-payment of GST. On the instructions of the Commissioner and Additional Commissioner, on behalf of the Anti-Evasion Branch of the Goods and Services Tax Commissioner, Udaipur, the action was taken against Mohanlal Sukhadia University, Udaipur for non-payment of GST, on the same lines, the investigation was started against Rajasthan Technical University. During the investigation, it was found that from time to time 92 to 150 technical and managerial colleges were affiliated to Rajasthan Technical University, Kota. An affiliation fee was collected from them, but GST has not been deposited as per rules. After this, information was collected from the university on behalf of the department and it was found that during the period 2017-18 and 2021-22, an amount of Rs 23.66 crore was received for affiliation fees 4.26 crore on which GST was not paid.

The Central Goods and Services Tax Superintendent (Preventive) said that the statement of the Finance Controller of Rajasthan Technical University, Kota was also recorded in this regard. On which he accepted that the GST has not been deposited by the University as per the rules. Cases of non-payment of GST on behalf of other universities and institutions are also being investigated by the department.

Provision for educational institutions:

A provision of 18 percent GST has been made on education services in the GST Act. On the recommendations of the GST Council, only certain services related to education have been exempted from GST. For example, services related to transportation of students, teachers and employees of educational institutions, catering, mid-day meal schemes, services related to security and sanitation and institutions up to the higher secondary school level have been exempted. At the same time, services related to admission in educational institutions and examinations have also been exempted from educational institutions.

The University is exempted from GST only in services related to admission to educational institutions and services related to conduct of examinations, in addition to services provided to students, teachers and staff studying. GST is payable on affiliation fee and all related charges.

The Finance Controller of Rajasthan Technical University has informed that the due GST will be deposited soon with the permission of the competent authority. Further investigation is on by the department.

KM Meena, Assistant Commissioner, Central Goods and Services Tax