Thiruvananthapuram: APJ Abdul Kalam Technological University collected ₹45.86 crore as affiliation fees from colleges in Kerala but defaulted on payment of GST to the tune of ₹8.25 crore, according to the report filed by the Kerala State Audit Department for 2022-23.

The report shows that the university collected affiliation fees between 2017-18 and 2022-23 and did not pay the mandatory GST during this period. In October 2024, the Audit Department sent a query to the university regarding non-payment of GST dues and the university replied that GST was not paid for the affiliation fees collected from colleges.

The university also collected ₹1.47 crore in five instalments between 2021-22 and 2023-24 as affiliation fees for 10 years from 3 autonomous colleges, and the university defaulted on payment of ₹26.62 lakh as GST. The report noted that the university has not furnished any explanation for defaulting GST payments to the state/centre for years.

In October 2024, the Ministry of Finance issued a circular on clarification regarding the applicability of GST on the service of affiliation provided by universities to colleges. As per the circular, the activity of affiliation is to monitor and ensure whether the institution possesses the required infrastructure in terms of space, technical prowess, financial liquidity, faculty strength, etc. and is thereby eligible for the privileges to conduct the course/program of study for the degree/title extended by the university to the students enrolled in such institutions. The affiliation services provided by the universities to colleges are not by way of services related to the admission of students to such colleges or the conduct of examinations by such colleges.

"As recommended by the 54th GST Council, it is hereby clarified that the affiliation services provided by universities to their constituent colleges are not covered within the ambit of exemptions provided to educational institutions and GST at the rate of 18% is applicable on the affiliation services provided by the universities," the circular said.

KSAD has cited this circular while making the observation in the report.