Rajasthan Technical University Vs Union of India (Rajasthan High Court)
The petitioner, a State university established under the Rajasthan Technical University Act, 2006, challenged a show cause notice dated 26.12.2023 issued under Section 74 of the CGST Act, 2017, whereby GST, interest, and penalty were demanded on affiliation fees collected from affiliated colleges for the period 2017–18 to 2022–23. The core issue before the Rajasthan High Court was whether affiliation granted by the University constitutes a “supply of service” under Section 7 of the CGST Act and whether affiliation fees amount to “consideration” attracting GST.
The University contended that affiliation is a statutory and regulatory function intrinsically connected with admissions, examinations, curriculum, and conferment of degrees. It argued that such activity is neither “business” under Section 2(17) nor a “supply” under Section 7, as it lacks commercial character and is not undertaken in the course or furtherance of business. Affiliation fees, being compulsory statutory levies without quid pro quo, do not qualify as “consideration.” Alternatively, it was submitted that even if treated as a service, affiliation falls within the exemption under Entry 66 of Notification No. 12/2017-CT (Rate), which exempts services provided by educational institutions relating to admission and conduct of examinations.
