Surendera Dental College And Research Institute Vs Rajasthan University of Health Science (Rajasthan High Court)
Summary: The Rajasthan High Court partly allowed the writ petition filed by Surendera Dental College And Research Institute challenging the demand raised by Rajasthan University of Health Science (RUHS) through letter dated 09.12.2024 for GST on affiliation fees. The petitioner-college was affiliated with RUHS for the academic sessions 2023-2024 to 2027-2028 and had already paid the affiliation fee for that period. The Court noted that the issue had already been adjudicated by a Co-ordinate Division Bench in Rajasthan Technical University Versus Union of India & Ors., where it was held that grant of affiliation by a university is a statutory and regulatory function and does not constitute a supply of service under the CGST Act. The earlier judgment further held that affiliation fees are not consideration for a taxable activity and that affiliation services are exempt under Entry 66 of Notification No. 12/2017-CT (Rate). Following that ratio, the High Court set aside the GST demand raised by RUHS and directed the GST authorities to refund any GST collected on affiliation fees within four months, subject to the stated verification regarding whether the GST burden had been passed on to students. If not refunded within the stipulated period, interest at 7% per annum would apply from the date of payment until refund. The Court declined to entertain the prayer concerning transfer of affiliation fee, holding that such relief was beyond its jurisdiction and granting liberty to the petitioner to seek appropriate relief through a separate writ petition.
Background of the Writ Petition
The present writ petition was filed by the petitioner-college challenging the demand raised by respondent No.1 – Rajasthan University of Health Science (RUHS) vide letter dated 09.12.2024 for payment of Goods & Service Tax (GST) on the affiliation fee collected by the University.
