Affiliation Fees Collected by Universities Liable to GST: Madras High Court

The Madras HC held that affiliation fees collected by universities from affiliated colleges attract GST and do not qualify for exemption under Notification No. 12/2017-CTR.

The Court said that although universities fall within the definition of “educational institutions,” the act of granting affiliation is a regulatory service provided to colleges.

It clarified that the exemption applies only to services directly relating to admission of students or conduct of examinations, not to all services rendered by universities.

The Court held that exemption notifications must be interpreted strictly and cannot be expanded beyond their clear terms.

[Bharathidasan University v. Joint Commissioner of GST]