GST on university affiliation services: affiliation and inspection are pre-admission services and are taxable under GST.

Affiliation charges levied by a university do not qualify as services "relating to admission to, or conduct of examination by" an educational institution under Notification No.12/2017-Central Tax (Rate); the activity of granting affiliation and associated inspections is a separate pre-admission/eligibility service and therefore falls within taxable "services" under the GST regime. The analysis applied statutory definitions of service, reviewed competing High Court precedents and administrative clarifications including Circular No.234/28/2024-GST and Notification No.08/2024-Central Tax (Rate), and adopted the view favouring taxability of affiliation fees.

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Issues: Whether affiliation charges collected by a university from affiliating institutions/colleges are amenable to levy of Goods and Services Tax (GST).

Analysis: The Court examined the text and scope of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 which exempts services "by an educational institution to its students, faculty and staff" and certain services "to an educational institution" such as services relating to admission to, or conduct of examination by, such institution. The Court considered competing High Court decisions and subsequent administrative clarifications, including Circular No.234/28/2024-GST dated 11.10.2024 and the GST Council recommendation leading to Notification No.08/2024-Central Tax (Rate) dated 08.10.2024. The Court analysed whether the activity of granting affiliation is part of "services relating to admission to, or conduct of examination by" an educational institution or is a separate pre-admission/inspection activity. The Court also reviewed the statutory definitions of "services" and the scope of Government's power to grant exemptions under the Central Goods and Services Tax Act, 2017, and considered precedent from other High Courts including Bombay, Telangana and Karnataka decisions distinguishing the nature of affiliation services from admission/examination services.

Conclusion: The affiliation fee collected by a university from colleges does not fall within the exemption for services relating to admission to, or conduct of examination by, an educational institution under Notification No.12/2017-Central Tax (Rate). Affiliation and inspection services are separate pre-admission/eligibility activities and are therefore amenable to levy of GST; the view favouring taxability is adopted.

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