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HC calls GST on MU affiliation fees ‘absurd’, scraps ₹33.8 crore demand
The Bombay High Court struck down a ₹33.80 crore GST demand on the University of Mumbai for affiliation fees, calling the move a gross absurdity. It ruled that a university’s statutory functions cannot be treated as business, and that affiliation fees are not consideration for supply of services under GST. The court quashed the tax orders issued in January 2025, including penalties.
Why It Matters
The ruling clarifies that statutory functions of public universities are not taxable as business activities under GST, potentially affecting similar GST disputes involving universities and other statutory bodies in India.
Timeline
2 Events
Bombay High Court rules university affiliations are not ‘supply’ under GST
May 3, 2026
The bench struck down the GST levy and related notices on MU, holding that the university’s statutory functions such as granting affiliation are not ‘supply’ under GST provisions. The court said treating a university as a business would violate the Maharashtra Public Universities Act, 2016.
GST orders issued against MU affiliation fees in January 2025
January 2025
GST authorities issued tax orders totaling ₹33.80 crore against the University of Mumbai, seeking GST on affiliation fees and including penalties. The university argued affiliation fees are part of its statutory functions, not a commercial service.