Publsihed: Friday, 2 June, 2017 02:00 PM

EPSI Delegation Meets Union Finance Minister Shri Arun Jaitley and MoS Shri Santosh Gangwar. Memorandum Submitted for Exemption of Outsourced Services of HEIs from GST.

Education Promotion Society for India (EPSI) has been in forefront to take up issues and problems of education since 2005.  It represents 300+ private universities and 3500+ private colleges.  Recently it has taken a big problem to be faced by all higher education institutions (HEIs) and universities (both private and public) w.e.f. July 1, 2017.  This is GST levy being imposed on the outsourced services by HEIs.

EPSI Delegation Meets Union

EPSI has taken a delegation of chancellors, vice chancellors and educationists to the Union Finance Minister, Shri Arun Jaitley and the Minister of State Shri Santosh Gangwar separately.  The delegation comprised of Dr G Viswanathan, Chancellor, VIT, Vellore and President, EPSI, Dr. Harivansh Chaturvedi, Director, BIMTECH, Greater Noida and Alternate President, EPSI, Dr. Prashant Bhalla, Chancellor, ManavRachna University, Faridabad & Treasurer, EPSI, Dr Ashok Mittal, Chancellor, Lovely Professional University, Jalandhar and Shri PK Gupta, Chancellor, Sharda University, Greater Noida.

EPSI Delegation

EPSI’s delegation submitted a memorandum both to Shri Jaitley and Shri Gangwar and appraised them about serious implications of GST levy being imposed on the outsourced services like transportation, security, hostel - mess and canteen, training, medical services, shops and admission related services etc. being provided by higher education institutions in their campuses for students, faculty and staff across the country.  Since these services are currently paid by users directly to vendors, GST levy will create financial burden on them and also lead to escalation of the cost of higher education.

EPSI Delegation

The EPSI’s delegation also explained to both ministers that imposition of levy on outsourced services in many cases will be detrimental to the quality of higher education.  HEIs will be forced to stop outsourcing and do it in-house.  The management of universities and colleges will unnecessarily be bogged down in managing these services which do not come into their core competencies viz. higher education.

EPSI Delegation

Shri Jaitley and Shri Gangwar assured the delegation to get examined the memorandum and to give a sympathetic consideration to the demand of the EPSI for withdrawal of the GST levy on outsourced services.

EPSI has also decided that it will send similar delegations to state finance ministers with a request to raise the matter in the ensuing meeting of the GST Council.

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