The focus keyphrase “Goa University affiliation fees” has gained attention after a recent High Court verdict clarified that these fees are not subject to GST. This decision offers critical relief to educational institutions facing tax demands from authorities.
What Did the High Court Rule?
The High Court of Bombay at Goa recently ruled that affiliation fees collected by Goa University are not liable to GST. The Court held that these fees fall within the exemption for services provided by educational institutions as per Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017.
Key Highlights from the Ruling
- Case Name: Goa University vs. Union of India
- Court: High Court of Bombay at Goa
- Date: April 2025
- Core Issue: Whether affiliation fees are taxable under GST
- Verdict: Not taxable – exempt under Entry 66 of the 2017 notification
Why Affiliation Fees Are Exempt
Under GST law, services by an educational institution to its students, faculty, or staff are exempt. The Court interpreted affiliation fees as part of the regulatory/academic process of maintaining education standards, not a “commercial service”.
Supporting Notification:
🔹 Notification No. 12/2017 – Central Tax (Rate)
🔹 Entry 66 – exempts services by:
- An educational institution to its students
- Conduct of entrance examinations
- Affiliation and accreditation activities
Practical Impact for Educational Institutions
- Universities and colleges charging or paying affiliation fees can now claim GST exemption, avoiding future tax demands.
- Past GST paid on such fees may also be refundable, depending on facts and limitation periods.
What Institutions Should Do Now
Here’s a simple checklist:
| Step | Action Item |
|---|---|
| 1. Identify payments | List down all affiliation fees paid/received |
| 2. Check GST returns | Ensure no GST was wrongly paid or claimed as ITC |
| 3. File refund if eligible | Apply for GST refund if paid wrongly (within time limits) |
| 4. Maintain records | Keep all correspondence and fee circulars handy |
| 5. Consult legal advisor | For older disputes or litigation in progress |
Goa University Affiliation Fees and GST: Final Word
The High Court’s ruling on Goa University affiliation fees being GST-free sets a precedent that strengthens the education sector’s claim for tax exemptions. It also limits the overreach of tax authorities into regulated academic transactions.