Punjab Universities Fail to Pay GST Worth Rs 5.31 Crore: CAG Report

The Punjabi University, Patiala, and the Sardar Beant Singh State University, Gurdaspur, in Punjab failed to pay Goods and Services Tax (GST) of Rs 5.31 crore. The CAG report indicates that the institutions did not pay the GST on taxable services like security and housekeeping between July 2017 and March 2022.

The Punjabi University, Patiala, and the Sardar Beant Singh State University, Gurdaspur, in Punjab, are reportedly in debt to the government for Rs 5.31 crore in unpaid Goods and Services Tax (GST). The information is based on a report presented by the Comptroller and Auditor General (CAG) of India to the Punjab Assembly on Wednesday.

The report clarifies that these educational institutions failed to fulfill their tax obligations on services such as security, cleaning, and housekeeping, which are not exempt from GST, given they offer services beyond pre-school and higher secondary education.

Upon audit scrutiny between November 2021 and August 2022, it was revealed that the universities had consumed services worth Rs 30.55 crore but only paid Rs 19 lakh in GST under a forward charge mechanism. The CAG insists these institutions should have been aware of their tax liabilities and taken the necessary corrective measures.

(With inputs from agencies.)