GST on amount deducted while refunding fees to students due to cancellation of admission

[Mratunjaya Vajramatti]

Hi,

suppose a particular students admission is cancelled, student is paid back his fees after deducting some % of amount. is GST applicable on this deducted amount.???

[Shilpi Jain]

What is the reason for the deduction? I mean why is some portion of money retained?

[KASTURI SETHI]

I have observed that it is a practice in some schools and colleges. This is deducted as processing/scrutiny of the admission forms. It is covered under Schedule-II (5)(e) of CGST Act and GST is applicable.

[Padmanathan KV]

Dear querist, need more inputs.

What is the reason for retaining such amount?

AI Summary

GST Applies to Fees Deduction on Admission Cancellation under Schedule-II (5)(e) of CGST Act; Clarifications Sought A discussion on a forum addresses whether GST is applicable on the amount deducted from student fees upon admission cancellation. A participant asks for clarification on the reason for the deduction. Another contributor notes that such deductions are common in educational institutions for processing or scrutiny of admission forms and are subject to GST under Schedule-II (5)(e) of the CGST Act. A third participant requests further details on why the amount is retained.