The Bombay High Court at Goa, in its judgment dated 15th April 2025 in Writ Petition No. 723/2024, ruled in favor of Goa University and quashed a GST demand of ₹4.83 crore on affiliation fees collected from colleges.
Key Points:
- Goa University had challenged:
- A show cause notice issued under Section 74 of the CGST Act.Two circulars issued by CBIC (dated 17.06.2021 and 11.10.2024).
- A press note based on recommendations of the 54th GST Council meeting.
- The University argued that:
- Affiliation fees are collected as part of its statutory duties under the Goa University Act, 1984.The activity is regulatory in nature and not commercial.
- Such services are exempt under GST Notification No. 12/2017.
- The GST department claimed:
- Affiliation fees are taxable services under GST.
- The exemptions apply only to services provided directly to students or staff.
Court’s Decision:
- The Court held that:
- Affiliation and related services are part of the University’s statutory and regulatory functions.These do not amount to “supply” or “business” under GST law.The circulars issued by CBIC are beyond the scope of the law and not enforceable.
- GST cannot be levied on such services.
Final Outcome:
- The show cause notice and the ₹4.83 crore tax demand were set aside.
- The Court also declared the impugned circulars to be without legal authority as they attempted to tax non-commercial education activities.