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

Taxability of retained fees: processing or scrutiny deductions on refunded tuition attract GST under statutory schedule provisions. If the retained portion of refunded student fees is consideration for a service (for example, processing or scrutiny of admission forms), that retained amount constitutes a taxable supply and attracts GST under the statutory schedule classifying supplies of services; factual determination of the reason for retention is required to apply this treatment.