AI Drafter 
TaxTMI 
TaxTMI 
2026 (2) TMI 722
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....021-22 and 2022 - 2023 were issued based on the defects found during the investigation followed by report of the Inspection Officer. 2.The contention of the respondent Department is that the affiliation fees collected by the University is not exempted from Goods and Service Tax (GST) as it is not a service provided to the Students in connection with admission or conduct of examinations. Whereas, the petitioner University contends that affiliation fee collected from the colleges affiliated to the University is for the service provided to the Educational Institutions, which admit students and conduct examination for courses recognised under Law. Therefore, the fees collected for affiliation are exempted from Tax as per notification No.12/2017 dated 28.06.2017. 3.When these writ petitions came up for consideration before the Learned Single Judge, he after noticing that there is cleavage of opinion between Hon'ble Judges of this Court, one Honourable Mr.Justice R.Sureshkumar, who authored W.P.(MD)No.20502 of 2019 in Madurai Kamaraj University -vs- Joint Commissioner vide order dated 16.08.2021 and in W.P.(MD)No.8353 of 2019 and Bharathidasan University -vs- Joint Commissioner....
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....f the negative list in Section 66-D(1)(ii) of the Finance Act, 1994 as it stood from 1st July, 2012 until its deletion in 2016. Hence, it is not liable to pay Service Tax on the amount collected towards affiliation charges from the colleges affiliated with the University. This plea was negatived by distinguishing the earlier judgment rendered by this Court in Madurai Kamaraj University (supra). According to the learned Judge, the notification issued by the Department being unambigious, there is no scope for interpretation with the language in the notification. 5.2.In Sree Ramu College of Arts and Science case, the learned Judge has recorded his view on levy of service tax for the affiliation fee as below: "..76.Deletion of "up to Higher Secondary" to entry 66(b) (iv) to Notification No.12/2017-CT (Rate), dated February 28, 2017 by Notification No.2/2018-CT (Rate), dated January 25, 2018 however did not mean service provided to the constituent colleges such as petitioner in W.P.No.11038 of 2022 and W.P.No.5967 of 2023 by the Bharathiyar University were exempted after amendment to entry (b)(iv) to entry No.66 to Notification No.12/2017-CT (Rate), dated February 28, 2017 v....
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....s an institution to send its students to participate in the public examinations conducted by the examining body and secure the qualification in the nature of degrees, diplomas, certificates, etc. In Principal and others Vs Presiding Officer and Others, (1978) 1 SCC 498, the Hon'ble Supreme Court observed that affiliation is meant to prepare and present students for public examination. In our view, affiliation is essentially an activity relating to admission and examination of students and hence the Circular dated 11.10.2024 in its application to the petitioner University is contrary to the settled legal position. The circular cannot take away the effect of the notification statutorily issued. The Respondents cannot whittle down the exemption notification and restrict the scope of the exemption notiication by issuing a circular, whereby a new condition is sought to be incorporated thereby restricting the scope of the exemption. ......" 7.The High Court of Telungana, when called upon to decide the issue of levying service tax affiliation fee collected by the University in Care College of Nursing and others Vs. Kaloji Narayana Rao University and others reported in 2024 (121) GS....
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....h are standalone Universities, which admit students directly, conduct examination and confer degree, but they are not permitted to grant affiliations to college. They are deemed to be Universities. No doubt Universities fall within the definition of Educational Institutions. However, the service of granting affiliation is not part of admission of students or conduct of examination for them. 8.2.The definition of 'service' under Section 2(102) of the Act, reads as below: "2(102) "Services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which separate consideration is charged. [Explanation -For the removal of doubts, it is hereby clarified that the expression "Services" includes facilitating or arranging transactions in securities;]" 8.3.The power to grant exemption from tax is vested with the Government. On satisfaction of the recommendation of the counsel, by notification, the Government can exempt generally either absolutely or subject to such condition as m....
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.... educational institution other than an Institution providing services by way of pre-school education and education up to higher secondary school or equivalent: [Provided further that nothing contained in subitem (v) of item (b) shall apply to an institution providing services by way of,- (i) pre-school education and education up to higher secondary school equivalent; or (ii) education as a part of an approved vocational education course.] 66A Heading 9992 Services of affiliation provided by a Central or State Educational Board or Council or any other similar body, by whatever name called, to a school established, owned or controlled by the Central Government, State Government, Union Territory, local authority, Governmental authority or Government entity." 8.6.The exemption notification indicates that services relating to admission or conduct of examination by the Educational Institutions alone are exempted from service tax. Therefore, any services prior to admission of candidates or conduct of examination cannot be brought within the scope of expression "services relating to admission to, or conduct of examination by, such Institution". 8.7.In the judgment o....
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....ational boards or councils, or other similar bodies, by whatever name called, are taxable. At the same time, the GST Council recommended exempting the supply of affiliation services provided by Central and State educational boards or Councils, or other similar bodies, by whatever name called to government schools i.e. schools established, owned or controlled by the Central Government, State Government, Union Territory, local authority, Governmental authority or Government entity. The same has been exempted w.e.f. 10.10.2024 vide notification No. 08/2024- Central Tax (Rate) dated 08.10.2024. 3.4.In its 54th meeting, the GST Council further recommended regularizing the GST liability on such services provided to all schools for the period from 01.07.2017 to 17.06.2021, ie, the date of issuance of Circular No. 151/07/2021- GST wherein accreditation services of boards are clarified to be taxable at the rate of 18%." 8.10.Thus, it is undoubtedly clear that the fees collected for affiliation and for inspection of colleges applied for affiliation, fall beyond the scope of service connected with admission of students and conduct of examination. The illustration given by the lear....