Inspection Fee and Affiliation Fee Charged by Universities From Colleges is Not Exempt Under GST | HC
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 21 November, 2023
Latest from Taxmann
Case Details: Care College of Nursing and others vs. Kaloji Narayana Rao University of Health Sciences - [2023] 156 taxmann.com 450 (TELANGANA)[17-10-2023]
Judiciary and Counsel Details
-
- P. Sam Koshy & Laxmi Narayana Alishetty, JJ.
- Gaddam Srinivas for the Petitioner.
- V. Rajeshwar Rao for the Respondent.
Facts of the Case
The University, for the purpose of granting affiliation to the colleges, first conducts inspection of the Colleges. For the same, it charges inspection fees and also, affiliation fees. The petitioner contends that the inspection and affiliation would be covered under the exemption granted under GST to the educational institutions.
High Court Held
In this regard, the High Court noted that the exemption entry in respect of educational services is restricted to the extent the services are provided to the students, staff, and faculty. It does not deal with the services rendered by the university to the educational institutions. ‘Affiliation’ and ‘inspection’ is a service rendered by the university to the educational institutions for which the university had charged the respective educational institutions.
Hence, the High Court held that where the exemption entry is required to be strictly construed and as the impugned services are not specifically contained in the exemption notification, these would remain taxable under the GST Act.
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
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
