In re Govind Guru Tribal University (AAR Rajasthan)
In a recent development, the Authority for Advance Ruling (AAR) in Rajasthan delivered a decisive verdict regarding an application submitted by Govind Guru Tribal University, Banswara, seeking clarity on the applicability of the Goods and Services Tax (GST) on affiliation charges collected from affiliated colleges. The AAR rejected the application, citing the reason that the question raised was already pending adjudication by the Central GST authorities in Udaipur, Rajasthan.
Detailed Analysis
Govind Guru Tribal University, established by the Government of Rajasthan, approached the AAR to determine whether GST is applicable on affiliation charges collected from colleges affiliated with the university. The university, a government-sponsored institution, argued that the services it provides should be exempt from GST under Notification No. 12/2017-GST dated June 28, 2017, which exempts services provided by an educational institution to its students, faculty, and staff.
The university’s contention was based on its status as a non-profit entity focused solely on education. It highlighted that it had not collected GST from any college affiliated with it prior to March 29, 2022, a point substantiated by its audited financial statements. Furthermore, the university expressed concerns about the financial impact of any retroactive GST liability on its affiliated colleges and their students.
However, the AAR, upon reviewing the application and the jurisdictional officer’s comments, found that the issue of the taxability of the affiliation fee collected by the university from its affiliated colleges was already under adjudication for the fiscal years 2017-18 to 2021-22. According to Section 98(2) of the CGST Act, 2017, the AAR is precluded from admitting applications where the questions raised are pending before any adjudicating authority under the provisions of the GST Act.
