2026-VIL-181-MAD
  1. Home
  2. 2026-VIL-181-MAD

SGST High Court Cases

GST - Levy of GST on affiliation fees collected by a University from affiliated colleges – Petitioner-University contended that the affiliation fees are exempt from GST as they are for services provided to educational institutions, which admit students and conduct examinations for courses recognised under law. The respondent revenue authorities argued that the affiliation fees are not exempt as they are not for services provided to students in connection with admission or conduct of examinations - Whether the affiliation fees collected by a University from affiliated colleges is amenable to levy of GST – HELD – While the Madurai Kamaraj University judgment had taken a liberal interpretation and held that the affiliation fees are exempt from GST as they are for services relating to educational institutions. However, the Manonmaniam Sundaranar University judgment and the Bombay High Court's Goa University judgment took a strict interpretation of the exemption notification and held that the affiliation fees are not exempt – As per the definition of 'service' under the GST Act and the exemption notification No.12/2017-CT(Rate), the exemption is restricted to services relating to admission of students and conduct of examinations by educational institutions, and does not cover services for affiliation of colleges – The Circular No. 234/28/2024 GST-dated 11.10.2024 stated that the activity of affiliation by educational boards or councils is not a service related to admission of students or conduct of examinations, and hence is liable to GST. Thus, it is clear that the fees collected for affiliation and for inspection of colleges applied for affiliation, fall beyond the scope of service connected with admission of students and conduct of examination - The extended meaning cannot be given to the expression 'services relating to admission or conduct of examination' to cover the affiliation fees collected by the University. The affiliation process is independent of the admission of students and conduct of examinations - In the earlier judgment rendered in Madurai Kamarajar University, the learned Judge had no occasion to consider Circular No. 234/28/2024 GST-dated 11.10.2024. The view expressed in the subsequent judgment namely, Pondichery University's case declares the correct legal position - The affiliation fees collected by the University from affiliated colleges is amenable to levy of GST, as it is not covered under the exemption notification for services relating to admission of students or conduct of examinations - the order of reference is answered accordingly
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Analysis of Union Budget 2026-27:
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?