GST Not Leviable on University Affiliation Fees | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 25 May, 2026

Latest from Taxmann

GST on University Affiliation Fees

Case Details: University of Mumbai vs. Union of India - [2026] 186 taxmann.com 37 (Bombay)

Judiciary and Counsel Details

  • G. S. Kulkarni & Aarti Sathe, JJ.
  • V. Raghuraman, Sr. Counsel, Sriraj Menon, Avesh Ganja, Sandesh Panchal & Raghvendra C.R for the Petitioner.
  • Jitendra B. Mishra, Saket Ketkar, Ashutosh Mishra, Rupesh Dubey & Ms Jyoti Chavan, Addl. G.P. for the Respondent.

Facts of the Case

The petitioner, a statutory university established under the Maharashtra Public Universities Act, 2016, collected affiliation fees from colleges for granting and continuation of affiliation in discharge of its statutory functions, including inspection, verification, and infrastructure assessment. The department issued a show cause notice under section 74 of the CGST Act proposing levy of GST, along with interest and penalty, on the affiliation fees collected during FY 2017-18 to 2022-23. The demand was confirmed through an order-in-original and the rectification application filed by the University was also rejected. The University challenged the levy before the Bombay High Court contending that grant of affiliation was a statutory and regulatory function and not a commercial activity or “supply” under sections 7 and 9 of the CGST Act.

High Court Held

The Bombay High Court held that grant of affiliation by the University was a statutory and regulatory function undertaken in furtherance of educational objectives and not in the course or furtherance of business. The affiliation fees collected for inspection, verification, and related statutory activities could not be treated as consideration for a taxable supply under section 7 of the CGST Act. Accordingly, the Court held that GST was not leviable on affiliation fees and the proceedings initiated under section 74 lacked jurisdiction. The impugned show cause notice, order-in-original, and rectification order were therefore quashed.

List of Cases Reviewed

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied