Educational activities, including affiliation fees, are not commercial in nature and thus exempt from GST under the Central Goods and Services Tax Act.

JUDGMENT :

M. S. Karnik, J.

1. This petition by the Goa University under Article 226 of the Constitution of India challenges a show cause notice dated 05.08.2024 issued by respondent no.1 – Joint Commissioner of Central Goods and Service Tax (CGST), Goa Commissionerate, proposing to demand GST on the educational activities of the petitioner University. During the pendency of the petition and after the matter was heard, the respondent no.1 heard the show cause notice and passed order in original under Section 74 of the GST Act dated 28.01.2025 which is also impugned pursuant to an amendment to this petition. The petitioner is also challenging the validity and legality of the Circular dated 17.02.2021 and paragraph 2 of the Circular dated 11.10.2021, both circulars issued by the respondent no.2 – Central Board of Indirect Taxes and Customs. The petitioner is also challenging the legality of paragraph 6(ii) of the Press Note dated 09.09.2024 issued to summarize recommendations made in the 54^th meeting of the GST Council.

2. No doubt, the petitioner has a remedy to challenge order in original as is the objection of the learned counsel for the respondents. However, we are examining this petition in the context of absence of jurisdictional facts to issue the impugned show cause notice. If we hold against the petitioner on this aspect, then obviously the petitioner has to avail of the remedy provided under the Central Goods and Service Tax Act, 2017 (GST Act for short) to challenge the order in original.

The facts relevant to a decision in this writ petition are as under :-

3. The petitioner – Goa University is a University established under the Goa University Act, 1984 (University Act for short). The University is set up for providing higher education in the State of Goa.

4. A show cause notice dated 28.03.2018 was issued to the University demanding service tax on affiliation fee by the Deputy Director, DGGI, Goa. On the basis of the reply iled by the Petitioner University, the show cause notice proceedings were dropped vide an Order dated 10.04.2019 passed by the Assistant Commissioner, Central GST, Div-II, Goa. The University obtained GST registration bearing GSTIN No. 30AAAJG1189Q1Z1 and is under the administrative control of Central Tax Authorities. The University has been remitting GST on the rent received from third parties and also iling returns on regular basis. The University provides higher education in the State of Goa ofering both degrees, for graduation and post-graduation programme. The University, in terms of the statutory scheme, has granted affiliation to around 67 colleges in the State of Goa and has collected 'affiliation fee'.

5. The Superintendent of CGST, Goa vide email dated 09.01.2024 requested for submission of report on the payment of GST by the education boards on affiliation services. The University vide email dated 10.01.2024 replied to the above referred email stating that the University has not charged GST on affiliation fees received from the colleges. The Superintendent, CGST Goa, vide email dated 17.01.2024 requested the University to provide the list of colleges/institutions to which affiliation is given along with copy of sample invoices. All details were furnished by the University vide its email dated 18.01.2024 regarding the affiliation fee received from various colleges for the academic year 2023-24.

6. On verification of the details, the oice of the Superintendent of CGST, Goa requested the Petitioner University to submit a detailed report as to why GST was not paid by them on affiliation fees collected. The University vide its email dated 24.01.2024 submitted that the Affiliation fees collected by them for various programmes are meant for students and treated as student related activity and hence the University has not charged GST on affiliation fee. Further details were sought by respondent no.1 about the total amount of affiliation fee collected along with the list of colleges and any other misce