GST not Applicable on affiliation, registration, and convocation fees by Goa University [Read Judgement]

The petitioner, Goa University, challenged a show cause notice dated 05.08.2024 and a subsequent order dated 28.01.2025 issued by the Joint Commissioner of CGST, demanding GST on affiliation fees collected from affiliated colleges.

The University contended that it is engaged in statutory educational functions under the Goa University Act, 1984 and is not liable to pay GST on such activities.

The petitioner also challenged CBIC Circulars dated 17.02.2021 and 11.10.2021, and the Press Note dated 09.09.2024 summarizing GST Council’s 54th meeting.

Issues Framed

• Whether the demand of GST on affiliation and other statutory fees by Goa University is without jurisdiction.
• Whether such statutory functions performed by a state-established university constitute taxable supply under CGST Act.
• Whether the CBIC circulars and press note issued in this context are contrary to the statutory framework of the CGST Act.

Petitioner’s Arguments:

• The University is a statutory body discharging non-commercial, regulatory educational functions.
• Fees collected (affiliation, examination, registration, convocation) are not ‘consideration’ under Section 7 of CGST Act.
• Circulars are ultra vires and incorrectly extend GST to exempt educational activities.
• Relied on precedents including Rajiv Gandhi University of Health Sciences, Madurai Kamaraj University, Ahmedabad Urban Development Authority.

Respondent’s Arguments:

• Affiliation services are not covered under exemption Notification No. 12/2017.
• Circulars clarify scope of taxable services and are within legal authority.
• The petitioner must pursue appellate remedy under CGST Act.
• Affiliation constitutes taxable supply under SAC 9992 attracting 18% GST.

Court’s Decision & Rationale

• The High Court determined that Goa University, being a statutory body established under the Goa University Act, performs educational and regulatory duties which are not of a commercial nature and therefore do not fall within the ambit of ‘business’ under Section 2(17) of the CGST Act.
• It concluded that the affiliation, registration, and convocation fees collected by the University are regulatory/statutory in character and not ‘consideration’ for services rendered under a contractual relationship, and therefore do not qualify as ‘supply’ under Section 7 of the CGST Act.
• The Court ruled that the impugned CBIC Circulars, to the extent they interpret such activities as taxable, are inconsistent with the statutory framework and ultra vires the CGST Act.
• It emphasized that the authority to levy GST must be exercised within statutory limits, and in absence of a proper jurisdictional foundation, the demand was without authority of law. Court held that Goa University, as a statutory body under Goa University Act, performs public functions not constituting business under Section 2(17) CGST Act.
• Fees collected are statutory/regulatory in nature and not contractual consideration; thus not liable to GST under Section 7.
• Circulars that assume affiliation as taxable supply conflict with statutory definitions and are not binding.

Held that GST demand based on such circulars and misinterpretation of law is without jurisdiction.

As a result the impugned show cause notice and order demanding GST of Rs. 4.83 crores were quashed.

CBIC Circulars dated 17.06.2021 and 11.10.2024, to the extent they deem affiliation services taxable, were declared ultra vires.

Held that affiliation, registration, and convocation fees by Goa University are not liable to GST.