“Do colleges have to pay GST on affiliation fees to universities?” This question continues to trouble educational institutions across India, especially amid evolving interpretations under the Goods and Services Tax.
The taxability of affiliation fees has been a subject of litigation, with courts examining whether such payments qualify as exempt educational services or taxable support services.
Several rulings have clarified that the nature of affiliation—whether it is intrinsically linked to education or a separate commercial service—plays a decisive role in determining GST liability, making it crucial for institutions to understand the latest case laws and judicial trends.
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Bombay High Court
Case Title: Goa University Versus Joint Commissioner Of Central Goods And Service Tax
Case No.: Writ Petition No.723/2024
The Goa Bench of Bombay High Court has quashed the Goods and Service Tax (GST) demand against Goa University citing the education is non-commercial in nature.
The bench of Justice M. S. Karnik and Justice Nivedita P. Mehta has observed that the GST was proposed on the sale of prospectus, sale of old newspapers, various fees towards sports, eligibility certificate, migration certificate, admission fee etc., received from students are also taken for the purpose of demand.
Madras High Court
Case Title: Bharathidasan University Versus The Joint Commissioner of GST
Case No.: W.P.(MD)Nos.27453, 27456 to 27458 of 2025
The Madurai Bench of the Madras High Court has held that affiliation fees collected by universities from affiliated colleges are amenable to levy of Goods and Services Tax (GST).
The Bench of Justice Dr. G. Jayachandran and Justice K.K. Ramakrishnan observed that affiliation services are independent of admission and examination. They do not fall within the scope of Entry 66 exemption. Affiliation fees collected by universities are subject to GST.
Karnataka High Court
Case Name: Principal Additional Director General V/S M/S Rajiv Gandhi University Of Health Sciences, Karnataka
Case Number : Writ Appeal No.856 Of 2022 (T-Res)
The Karnataka High Court ruled that no service tax is chargeable on affiliation fees paid to universities.
The Division Bench dismissed the Revenue’s writ appeal against order of Single Judge by holding that no service tax could be charged on affiliation fees paid to the Universities.
Case title: M/S. Visvesvaraya Technological V/S Additional Director General
Citation: Writ Petition No. 105066 Of 2018 (T-Tar)
The Karnataka High Court has held that service tax cannot be levied on the income accruing on account of affiliation by a university.
The bench of Justice Jyoti Mulimani has observed that the authorities concerned are not justified in levying service tax on the income accruing on account of affiliation during the academic year July 2012 to March 2017 and April 2017 to June 2017. Therefore, the show cause notices issued by the authorities concerned are liable to be set aside.
Case Title: M/S Bengaluru North University Versus Joint Commissioner Of Central Tax
Case No.: Writ Petition No. 4254 Of 2024 (T-Res)
The Karnataka High Court has quashed a series of Goods and Services Tax (GST) demands raised against three major state universities, ruling that affiliation and related statutory fees collected from colleges and students do not amount to a commercial activity liable to GST.
The bench of Justice S.R.Krishna Kumar has observed that the activities of Universities are not commercial in nature and cannot be termed as “supply” in the course or furtherance of business and consequently, activities incidental to education cannot be brought to tax under the GST regime on the ground that it amounts to a business; so also, the fee collected by the Universities is not consideration and the activities undertaken by the Universities are statutory and regulatory in nature; the services provided by the Universities are exempt from GST in terms of Entry No. 66 of Notification No. 12/2017-CT (R) dated 28.06.2017 and the impugned Circulars dated 17.06.2021 and 11.10.2024 are illegal and invalid in law.
Case Title: M/S Indus International School Private Limited Versus Deputy Director DGGI
Case No.: Writ Petition No. 31991 Of 2024 (T-Res)
The Karnataka High Court has quashed a GST demand raised on affiliation fees paid by an International Baccalaureate (IB) school to foreign educational boards, holding that affiliation fees are exempt from GST under the education-related exemption notifications.
The bench of Justice S.R. Krishna Kumar has observed that international qualifications such as IB and IGCSE are recognised in India, as clarified by the Association of Indian Universities (AIU) and the Ministry of Human Resource Development. The exemption must be interpreted in a manner that advances the objective of promoting education, rather than defeating it by indirectly burdening students through tax pass-through.
Rajasthan High Court
Case Title: Rajasthan Technical University Versus UOI
Citation: JURISHOUR-154-HC-2026(Raj)
The Rajasthan High Court has held that affiliation fees and related regulatory charges collected by universities from their affiliated colleges are not taxable under the Goods and Services Tax (GST) because they are part of statutory, non-commercial educational functions.
The Bench of Justice Arun Monga and Justice Yogendra Kumar Purohit has observed that the grant of affiliation by a State University is an integral statutory duty essential to the academic process and does not amount to a “supply of service” in the course of business liable to GST. The Court quashed the show-cause notice and all consequential proceedings issued against Rajasthan Technical University under Section 74 of the CGST/RGST Acts
Andhra Pradesh High Court
Case Title: Jawaharlal Nehru Technological University Kakinada (JNTUK) Versus The Principal Commissioner Of Central Tax
Citation: JURISHOUR-986-HC-2026(AP)
The Andhra Pradesh High Court has held that Goods and Services Tax (GST) cannot be levied on affiliation fees and No Objection Certificate (NOC) fees collected by State universities from affiliated colleges, as such activities are statutory in nature and do not qualify as “business” under the GST regime.
The Bench of Justice R. Raghunandan Rao and Justice T.C.D. Sekhar delivered a common judgment in a batch of writ petitions, including the case of Jawaharlal Nehru Technological University, Kakinada (JNTUK), challenging GST demands raised by the tax authorities.
CESTAT
Case Title: Rajeev Gandhi Proudyogiki Vishwavidyalay Versus The Principal Commissioner, Central Tax, Customs & Central Excise, Bhopal
Case No.: Service Tax Appeal No.50713 of 2019
In a major relief to Rajeev Gandhi Proudyogiki Vishwavidyalay (RGPV), the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside a service tax demand of Rs. 6.07 crore, ruling that charges collected by the university for granting affiliation and related services do not attract service tax under the Finance Act, 1994.
The bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member), also noted that the Supreme Court had recently dismissed a Special Leave Petition filed by the Revenue against a similar Karnataka High Court ruling, effectively settling the matter.
Case Title: Registrar M/s University of Kota Versus Commissioner, Central Goods Service Tax & Central Excise, Jodhpur
Case No.: Service Tax Appeal No.50874Of 2020
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi in a case argued by Dr. Sanjiv Agarwal has set aside a service tax demand on affiliation fees imposed on the University of Kota quashed.
The bench of Binu Tamta (Judicial Member) and Sanjiv Srivastava (Technical Member) observed that affiliation fees collected by the university do not qualify as “services” rendered for consideration under the Finance Act, 1994, due to the absence of any commercial intent.
Read More: GST Not Leviable on Affiliation & NOC Fees Collected by Universities: Andhra Pradesh High Court
