BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

RESERVED ON : 02.02.2026

PRONOUNCED ON : 10.02.2026

CORAM:

THE HONOURABLE DR.JUSTICE G. JAYACHANDRAN

AND

THE HONOURABLE MR.JUSTICE K.K. RAMAKRISHNAN

W.P.(MD)Nos.27453, 27456 to 27458 of 2025

and

W.M.P.(MD)Nos.21370, 21371, 21379, 21381, 21395, 21396, 21376 and

21378 of 2025

Bharathidasan University,

Rep. By its Registrar,

Palkalaiperur,

Tiriuchirappalli-620 024. ... Petitioner in all petitions

Vs.

1.The Joint Commissioner of GST (ST-Intelligence)

Trichy Division,

C/107 B3-II Floors North East Extension,

Sasthri Road, Thillainagar,

Tiruchirappali-620 018.

2.The State Tax Officer,

Ponmalai Assessment Circle,

Khajamalai, Mannarpuram,

Tiruchirapalli-620 020 ... Respondents in all petitions

COMMON PRAYER :- Writ Petitions- filed under Article 226 of the

Constitution of India, to issue a Writ of Certiorarified Mandamus, to call

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for the records of the impugned notice of the first respondent dated

16.07.2025 in Form GST DRC 01 for the periods 2019-2020, 2021-2022,

2020- 2021 and 2022-2023 and quash the same as illegal and declare that

affiliation fees and other related educational receipts collected by the

petitioner are exempt under notification No.12/2017-CTR read with

Articles 243G and 243W of the Constitution and not taxable by virtue of

CBIC Circular No.234/28/2024/GST.

In all cases:

For Petitioner : Mr.V.R.Shanmuganathan

For Respondents: Mr.R.Sureshkumar

Additional Government Pleader

COMMON ORDER

(Order of the Court was made by DR.G.JAYACHANDRAN, J.)

These four writ petitions are directed against the notices of

intimation of liability under Section 74(5) of Tamil Nadu Goods and

Services Tax Act, 2017, issued by the Joint Commissioner (ST-

Intelligence), Trichy Division calling upon the Bharathidasan University,

writ petitioner herein to show cause to the Adjudicating Authority as to

why tax due mentioned, together with 18% interest and penalty, should

not be levied. Separate notices for the period 2019-2020, 2020-2021,

2021-22 and 2022 – 2023 were issued based on the defects found during

the investigation followed by report of the Inspection Officer.

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2.The contention of the respondent Department is that the

affiliation fees collected by the University is not exempted from Goods

and Service Tax (GST) as it is not a service provided to the Students in

connection with admission or conduct of examinations. Whereas, the

petitioner University contends that affiliation fee collected from the

colleges affiliated to the University is for the service provided to the

Educational Institutions, which admit students and conduct examination

for courses recognised under Law. Therefore, the fees collected for

affiliation are exempted from Tax as per notification No.12/2017 dated

28.06.2017.

3.When these writ petitions came up for consideration before

the Learned Single Judge, he after noticing that there is cleavage of

opinion between Hon'ble Judges of this Court, one Honourable

Mr.Justice R.Sureshkumar, who authored W.P.(MD)No.20502 of 2019 in

Madurai Kamaraj University –vs- Joint Commissioner vide order dated

16.08.2021 and in W.P.(MD)No.8353 of 2019 and Bharathidasan

University –vs- Joint Commissioner of GST and Central Excise, vide

order dated 21.09.2021 and another Honourable Mr.Justice C.Saravanan

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who authored W.P. (MD) No.19587 of 2021 ( Manonmaniam

Sundaranar University –vs- The Union of India and others), referred

the matter to Division Bench for authoritative opinion for consideration

of the following term of reference:

“Whether affiliation charges collected by an University

from the affiliating Institution is amenable to levy of GST ?” .

4.We have the advantage of reading through the conflicting

views expressed by the two Hon'ble Judges of this Court in their

judgments cited above. The gist of their view is as under:

4.1.In Madurai Kamarajar Univesity's case, the Hon'ble

Mr.Justice R.Sureshkumar, after tracing the history of GST Act qua the

purpose of establishing the petitioner University, namely Madurai

Kamarajar University, had held that the purposive interpretation of the

Act is required while dealing with the provision of exemption for

Educational Institutions. When the expression 'conduct of examination'

is considered to be the service relating to educational Institutions and

exempted from service tax, then the service of granting affiliation to the

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colleges, which conducts the examination, should also be considered as

service relating to educational Institutions. A narrow and pedantic

interpretation given by the Advance Ruling Authority would destroy the

very concept of providing exemption to the services rendered by the

educational Institutions. The word 'Educational Institutions' cannot

denote only the college affiliated to the university alone, but it also

includes the university which grants affiliation.

4.2.The Hon'ble Mr.Justice C.Saravnana has relied his earlier

judgments in W.P.No.15333 of 2020 [Pondicherry University, rep by its

Registrar (I/c) vs. The Joint Commissioner of GST, Central Excise,

Pondicherry, dated 12.10.2023] reported in 2024 (121) GSTR 321 and

Sree Ramu College of Arts and Science vs. Authority for clarification

and Advance Ruling Reported in (2024) 14 Centax 218 (Mad), wherein

the issue is answered against the University.

5.The gist of the above two judgments rendered by the Hon'ble

Mr.Justice C.Saravnan, are as follows:

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5.1.In Pondichery University's case the Pondichery University

contended that the service provided by them falls within the purview of

the negative list in Section 66-D(1)(ii) of the Finance Act, 1994 as it

stood from 1st July, 2012 until its deletion in 2016. Hence, it is not liable

to pay Service Tax on the amount collected towards affiliation charges

from the colleges affiliated with the University. This plea was negatived

by distinguishing the earlier judgment rendered by this Court in Madurai

Kamaraj University (supra). According to the learned Judge, the

notification issued by the Department being unambigious, there is no

scope for interpretation with the language in the notification.

5.2.In Sree Ramu College of Arts and Science case, the learned

Judge has recorded his view on levy of service tax for the affiliation fee

as below:

“..76.Deletion of “up to Higher Secondary” to entry 66(b)

(iv) to Notification No.12/2017-CT (Rate), dated February 28, 2017

by Notification No.2/2018-CT (Rate), dated January 25, 2018

however did not mean service provided to the constituent colleges

such as petitioner in W.P.No.11038 of 2022 and W.P.No.5967 of 2023

by the Bharathiyar University were exempted after amendment to

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entry (b)(iv) to entry No.66 to Notification No.12/2017-CT (Rate),

dated February 28, 2017 vide Notification No.2/2018-CT (Rate),

dated January 25, 2018.

77.There is no ambiguity in the language in entry (b)(iv) to

entry 66 to Notification No.12/2017-CT (Rate), dated June 28, 2017

as amended by Notification No.2/2018-CT dated January 25, 2018.

Entry (b)(iv) to entry 66 to Notification No.12/2017-CT (Rate) dated

June 28, 2017 as amended by Notification No.2/2018-CT, dated

January 25, 2018 is applicable only for services relating to

examination or conduct of examination by the petitioner colleges in

W.P.No.11038 of 2022 and W.P.No.5967 of 2023 and not to work

relating to affiliation.”

6.When a similar issue came up for consideration before the

Bombay High Court in Goa University Vs. Joint Commissioner of

Central Goods and Service Tax reported in [2025 173 taxmann.com

562 (Bombay)], the Division Bench of the Bombay High Court, taking

into consideration the circular dated 17.06.2021 and the further

clarification dated 11.10.2024 issued by the Government of India,

Ministry of Finance in respect of the Notification No.12/2017, Central

Tax (Rate), dated 28.06.2017, had observed as below:

“54.In our view the impugned Circular dated 11.10.2024 in

its application to the Petitioner University is contrary to the plain

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language of the notification which exempts services by educational

institution to its students, faculty and staff and also services provided to

educational institution. The Impugned clarifications issued by the

Respondent No. 2, does not notice the existence of the exemption under

clause (a) of entry 66 of the exemption notification no. 12/2017 in so

far as it relates to demanding GST on affiliation fees. The university is

also an educational institution and students of the university, include

students studying through affiliated colleges. Thus, the activities of the

university, in so far as it relates to levying of affiliation fees is exempt

from GST. The Circular dated 11.10.2024 in its application to the Goa

University where it is clarified that the affiliation services by

universities to colleges are not by way of services related to the

admission of students to such colleges or the conduct of examinations

by such colleges, is erroneous.

55. The Hon'ble Supreme Court in Bhartia Education

Society v. State of H.P., (2011) 4 SCC 527, in the context of the NCTE

Act, observed that "affiliation" enables and permits an institution to

send its students to participate in the public examinations conducted

by the examining body and secure the qualification in the nature of

degrees, diplomas, certificates, etc. In Principal and others Vs

Presiding Officer and Others, (1978) 1 SCC 498, the Hon'ble Supreme

Court observed that affiliation is meant to prepare and present

students for public examination. In our view, affiliation is essentially

an activity relating to admission and examination of students and

hence the Circular dated 11.10.2024 in its application to the petitioner

University is contrary to the settled legal position. The circular cannot

take away the effect of the notification statutorily issued. The

Respondents cannot whittle down the exemption notification and

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restrict the scope of the exemption notiication by issuing a circular,

whereby a new condition is sought to be incorporated thereby

restricting the scope of the exemption. ......”

7.The High Court of Telungana, when called upon to decide the

issue of levying service tax affiliation fee collected by the University in

Care College of Nursing and others Vs. Kaloji Narayana Rao

University and others reported in 2024 (121) GSTR 106, held as below:

“34. Relying upon the constitutional decision of the

Hon'ble Apex Court also, we are of the firm view that firstly, the

Notification No.12 of 2017, dated 28.06.2017, cannot be made

applicable upon inspection and affiliation fees charged by the

1st respondent-University from the educational institutions.

Secondly, since so far as inspection and affiliation fees charged

by the 1st respondent-University from the educational

institutions has not been specifically exempted in terms of the

Constitution Bench judgment in M/s. Dilip Kumar and Company

(6 supra), the said benefit cannot be extended to the petitioners.

As regards the two decisions rendered by the Karnataka High

Court in M/s. Rajiv Gandhi University of Health Sciences (1

supra) and in M/s.Bangalore University (2 supra), which was

heavily relied upon by the learned counsel for the petitioners,

we are in complete agreement to the contentions raised by the

learned counsel for the respondent- Department that the learned

Single Judge of the Karnataka High Court while passing orders

in the aforesaid two decisions, has relied upon the provisions of

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Finance Act, 1994 (Section 66D) clause (I) of Section 66D of the

Finance Act, 1994 which in fact, first of all, stood omitted by the

Finance Act, 2016 w.e.f. 14.05.2016. Secondly, what also needs

to be mentioned is that under the G.S.T. law there is no such

provision as Sub-Clause (ii) of Section 66D of the Finance Act.

Therefore, we are inclined to respectfully disagree with the view

taken by the Karnataka High Court in the aforesaid two

decisions. Therefore, the said decisions are distinguishable in

facts and law.”

8.From the judgments cited above and from the reasonings

given, we answer the order of reference as below:

8.1.Affiliation to the colleges by University is pre requisite for

any college to admit students for the course offered by the College. It is

a pre requisite to admit student and conduct examination for them in

respective courses. Only after affiliation is granted, the interface with the

University and the admission of students in the affiliated college will

commence. Imparting education commences from admission and ends

on conferment of degree by the University to which the college is

affiliated. In India, there are Universities, which are affiliating

universities and there are Educational Institutes, which are standalone

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Universities, which admit students directly, conduct examination and

confer degree, but they are not permitted to grant affiliations to college.

They are deemed to be Universities. No doubt Universities fall within

the definition of Educational Institutions. However, the service of

granting affiliation is not part of admission of students or conduct of

examination for them.

8.2.The definition of 'service' under Section 2(102) of the Act,

reads as below:

“2(102) “Services” means anything other than goods,

money and securities but includes activities relating to the use of

money or its conversion by cash or by any other mode, from one

form, currency or denomination, to another form, currency or

denomination for which separate consideration is charged.

[Explanation -For the removal of doubts, it is hereby

clarified that the expression “Services” includes facilitating or

arranging transactions in securities;]”

8.3.The power to grant exemption from tax is vested with the

Government. On satisfaction of the recommendation of the counsel, by

notification, the Government can exempt generally either absolutely or

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subject to such condition as may be specified thereon, any goods of

service or both in exercise of power under Section 11 of the Act.

8.4.Accordingly, the service provided by Educational

Institutions to its students, faculty and staffs were exempted through

notification No.12/2017-CTR, which is relied by the petitioner

University to seek exemption from paying tax for the affiliation fee

collected by the University from colleges seeking affiliation from the

said University. However, this exemption is not for all services rendered

by the University, but restricted to admission and examination of students

only.

8.5.For easy reference, the notification No.12/2017 relied by

the petitioner University is extracted below:

In exercise of the powers conferred by [sub-section (3) and sub-section

(4) of section 9, sub-section (1) of Section 11, sub-section (5) of section 15

and section 148] of the Central Goods and Services Tax Act, 2017 (12 of

2017), the Central Government, on being satisfied that it is necessary in

the public interest so to do, on the recommendations of the Council,

hereby exempts the intra-State supply of services of description as

specified in column (3) of the Table below from so much of the central tax

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leviable thereon under sub-section (1) of section 9 of the said Act, as is in

excess of the said tax calculated at the rate as specified in the

corresponding entry in column (4) of the said Table, unless specified

otherwise, subject to the relevant conditions as specified in the

corresponding entry in column (5) of the said Table:-

66Heading 1992

or Heading 9963

Services provided

(a) by an educational institution to its students,

faculty and staff;

[(aa) by an educational institution by way of

conduct of entrance examination

against consideration in the form of entrance

fee;]

(b) to an educational institution, by way of,-

(i) transportation of students, faculty and staff;

(ii) catering, including any mid-day meals scheme

sponsored by the Central Government, State

Government or Union territory;

(iii) security or cleaning or house- keeping services

performed in such educational institution;

(iv) services relating to admission to, or conduct of

examination by, such institution;

[(v) supply of online educational journals or

periodicals:]

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Provided that nothing contained in [sub-items (i),

(ii) and (ii) of item (b)] shall apply to an

educational institution other than an Institution

providing services by way of pre-school education

and education up to higher secondary school or

equivalent:

[Provided further that nothing contained in sub-

item (v) of item (b) shall apply to an institution

providing services by way of,-

(i) pre-school education and education up to

higher secondary school equivalent; or

(ii) education as a part of an approved vocational

education course.]

66

A

Heading 9992

Services of affiliation provided by a Central or

State Educational Board or Council or

any other similar body, by whatever name

called, to a school established, owned or

controlled by the Central Government, State

Government, Union Territory, local authority,

Governmental authority or Government entity.”

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8.6.The exemption notification indicates that services relating

to admission or conduct of examination by the Educational Institutions

alone are exempted from service tax. Therefore, any services prior to

admission of candidates or conduct of examination cannot be brought

within the scope of expression “services relating to admission to, or

conduct of examination by, such Institution”.

8.7.In the judgment of the Madurai Kamaraj University

(supra), the learned Judge has differed with the view expressed by the

Advance Ruling Authority stating that there cannot be a narrow or

pedantic interpretation to the word 'conduct of examination'.

8.8.Contrary to that in the case of Manonmaniam Sundaranar

University, which is latter in point of time, the learned Judge has taken

into account the subsequent notification and observed that when there is

no ambiguity in the language of legislation a taxing statute should be

construed strictly while interpreting the exempting provisions.

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8.9.In the earlier judgment rendered in Madurai Kamarajar

University, the learned Judge had no occasion to consider Circular No.

234/28/2024 GST-dated 11.10.2024, which clarifies the applicability of

GST on the service of affiliation provided by Universities to colleges.

Paragraph No.3 of the clarificatory circular by the Government of India

pursuant to the recommendation of the GST Council in its 54

th

meeting

conducted on 09.09.2024 issued in exercise of the powers conferred

under Section 168(1) of the Central Goods and Services Tax Act, 2017,

reads as follows:

“3.Applicability of GST on the service of affiliation provided by

Central and State educational boards or Councils, or other similar

bodies, to schools:

3.1.Representations have been received to clarify the

applicability of GST on the service of affiliation provided by the

Central and State educational boards or councils, or other similar

bodies, to schools and to regularize the payment of tax on such

services for the past period.

3.2.The activity of affiliation carried out by educational

boards or councils, or other similar bodies, is to monitor and ensure

whether the schools possess the required infrastructure, finances,

faculty strength etc. and are thereby eligible for the privileges to

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operate under the aegis of said boards or councils. The services of

affiliation provided to schools by educational boards or councils, or

other similar bodies, are not by way of services related to the

admission of students to such schools or the conduct of examinations

by such schools.

3.3.The matter was placed before the GST Council in its

54th meeting held on 096 September 2024, and the GST Council

recommended to clarify that such services of affiliation, provided to

schools by Central or State educational boards or councils, or other

similar bodies, by whatever name called, are taxable. At the same

time, the GST Council recommended exempting the supply of

affiliation services provided by Central and State educational boards

or Councils, or other similar bodies, by whatever name called to

government schools i.e. schools established, owned or controlled by

the Central Government, State Government, Union Territory, local

authority, Governmental authority or Government entity. The same

has been exempted w.e.f. 10.10.2024 vide notification No. 08/2024-

Central Tax (Rate) dated 08.10.2024.

3.4.In its 54th meeting, the GST Council further

recommended regularizing the GST liability on such services

provided to all schools for the period from 01.07.2017 to

17.06.2021, ie, the date of issuance of Circular No. 151/07/2021-

GST wherein accreditation services of boards are clarified to be

taxable at the rate of 18%.”

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8.10.Thus, it is undoubtedly clear that the fees collected for

affiliation and for inspection of colleges applied for affiliation, fall

beyond the scope of service connected with admission of students and

conduct of examination. The illustration given by the learned Single

Judge in Madurai Kamaraj University's case that admission of students

by affiliating college is controlled by universities while granting

affiliation and if the affiliation is granted for admitting 100 students, the

College cannot admit even one student more and therefore, the extended

meaning should be given to the expression 'service in connection with

admission of student', is fallacious. The number of students to be

admitted in the affiliated college is determined by the statute namely, the

University Act based on availability of necessary infrastructure, such as

building, teaching faculty etc.. Admission of students commences only

after the affiliation is granted on satisfaction of required infrastructure.

Any service provided for granting affiliation is independent of admitting

student and conduct of examination. Therefore, extended meaning to the

expression 'admission of student or conduct of examination' is

impermissible.

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9.As a result, we hold that the view expressed in the

subsequent judgment namely, Pondichery University's case declares the

correct legal position, since the affiliation fee collected by the

Universities does not fall within exemption. Accordingly, the fee

collected by the University from the Colleges as affiliation fees is

amenable for levy of GST. Thus the order of reference is answered

accordingly. The matter is sent back to the learned Single Judge to

decide the case on other grounds, if any.

[G.J., J.] & [K.K.R.K., J.]

10.02.2026

Index :Yes

Internet:Yes

ta

To

1.The Joint Commissioner of GST (ST-Intelligence)

Trichy Division,

C/107 B3-II Floors North East Extension,

Sasthri Road, Thillainagar,

Tiruchirappali-620 018.

2.The State Tax Officer,

Ponmalai Assessment Circle,

Khajamalai, Mannarpuram,

Tiruchirapalli-620 020

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DR. G. JAYACHANDRAN , J.

AND

K.K. RAMAKRISHNAN, J.

ta

W.P.(MD)Nos.27453, 27456 to 27458 of 2025

10.02.2026

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