MP News: Government Likely To Scrap GST On Affiliation Fees

Indore (Madhya Pradesh): The state government is preparing to abolish Goods and Services Tax (GST) levied on course affiliation fees, a move that could bring major relief to educational institutions across the state. The decision comes after long-standing demands from college managements, which have been urging the government to remove GST on affiliation charges.

According to official sources, the government has begun deliberations on amending the relevant rules. A recent meeting between government officials and education experts focused on possible regulatory changes. After the meeting, clear indications emerged that GST on course affiliation fees may soon be withdrawn.

Officials said an order related to GST exemption is expected to be issued by February. If approved, the exemption will be implemented for the upcoming academic session’s affiliation process. This means that colleges will not be required to pay GST on affiliation fees in the next academic year.

At present, colleges have to pay 18 per cent GST on affiliation fees for courses such as BA, BCom, BSc, MA, MCom, MSc, MBA, Nursing and other programs. For each course, colleges deposit approximately Rs 1 lakh to Rs 1.5 lakh as affiliation fees and GST on this amount has been an additional financial burden.

If the GST exemption is implemented in February, hundreds of colleges across the state will directly benefit. In particular, around 180 colleges affiliated with Devi Ahilya University are expected to receive significant relief. The university administration has suggested that once GST is removed, the savings made by colleges should be utilised for university support and academic development activities.

Director of college development council Dr Sachin Sharma, stated that the state government is actively considering GST exemption on affiliation fees. He added that for the 2026–27 academic session, colleges will be required to pay only the basic affiliation fee. He also emphasised the need for colleges to contribute to the overall development of the university.