Teachers Union Opposes 18% GST on School Fees in Punjab

Speaking against the latest directive of the Punjab School Education Board, the continuation fees of which would now attract another 18% GST, the Private School Teachers’ Union, under the banner of the Joint Action Front. The union has appealed to the education secretary for the withdrawal of the order, saying that this would be financially beneficial for the schools and families.

In this regard, the union stated in a statement that GST will further deterioration financial burdens already bearing by most of the institutions and students on which the institutions are charging their tuition fees. According to the union’s general secretary JP Bhatt, tuition fee for classes V and VII have gone up to Rs 5,000 and Rs 8,000 respectively, from what the schools used to pay earlier to the state government. Now with this GST an extra 18% of taxes will be added to the fees.

According to educators, the order will affect close to 1,000 schools in the district. They say that reversal of the order will relieve not only the schools but also the families that are increasingly finding it hard to afford education. Bhatt said under the Central Goods and Services Tax Act, 2017, pre-school education and services up to the level of higher secondary were exempt from GST. Other such schemes, like student transportation and mid-day meal schemes, also continue to remain out of the purview of GST.

The union found this as being against provisions because continuation fees would be levied with GST, further complicating the access to education. Bhatt further urged that removal of this tax would make educational access cheaper and reduce pressure on parents’ pockets.

An unnamed official from the PSEB explained that the board is compelled to collect GST from schools, as the central government charges GST from them as well. The official acknowledged the additional burden but mentioned that similar challenges are being faced by other boards, such as CBSE, which are also contesting the issue in court.