Principal Vs Union of India (Rajasthan High Court)
The Rajasthan High Court considered a challenge to an order dated 08.07.2026 directing the petitioner to deposit GST on affiliation fees as a pre-condition for renewal of affiliation for the academic session 2025–2026. The petitioner contended that the proposed GST levy and demand on affiliation fees was unsustainable and that affiliation did not constitute a taxable service.
At the outset, the parties agreed that the controversy had already been decided by the Rajasthan High Court in Rajasthan Technical University v. Union of India, judgment dated 23.02.2026. In that judgment, the Court held that grant of affiliation by a University is a statutory function and does not constitute a “supply of service” under Section 7 of the CGST Act. It further held that affiliation fees are a statutory levy rather than consideration for a negotiated service, as affiliation is compulsory and involves no choice, bargaining or reciprocity.
The earlier judgment also held that, even assuming affiliation to be a service, it is covered by the exemption under Entry 66 of Notification No. 12/2017-CT (Rate), as affiliation is connected with curriculum approval, student admissions, examinations and conferment of degrees. The Court held that circulars or executive clarifications cannot override statutory provisions or exemption notifications and concluded that levy of GST on affiliation fees was without authority of law.
