Affiliation fee charged by Kota University is not exempt under GST: AAR

Case Details: Authority for Advance Rulings, Rajasthan Universiry of Kota, In re - [2023] 146 taxmann.com 533 (AAR- RAJASTHAN)

Judiciary and Counsel Details

• • Umesh Kumar Garg & M.S. Kavia, Member
  • Sanjiv Agarwal & Neha Somani, CA’s for the Applicant.

Facts of the Case

The applicant was a University set up by Government for sole purpose of providing education to students in State. It would also provide affiliation services to colleges on payment of affiliation fees which shall be paid out of fees collected from students. It filed an application for advance ruling to determine whether services relating to affiliation granted to colleges for imparting education would fall within purview of exempted supply and whether amount collected by way of affiliation fee would be exempted.

AAR Held

The Authority for Advance Ruling observed that in order to fall within the purview of ‘exempted services’ it would be necessary that such services relates to admission of students and conduct of examination. However, in the instant case, the applicant would provide ‘affiliation services’ which shall not relate to admission of students to such course/programme in said institutions or conduct of examination for admission in institution. These affiliation services provided by applicant to its constituent colleges for imparting education would be treated as a supply and ‘affiliation fees’ collected would not be exempted under entry SI.No.66 of Notification No. 12/2017- C.T.(Rate) dated 28.06.2017.