Case Details: University of Mumbai vs. Union of India - [2026] 186 taxmann.com 37 (Bombay)
Judiciary and Counsel Details
- G. S. Kulkarni & Aarti Sathe, JJ.
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V. Raghuraman, Sr. Counsel, Sriraj Menon, Avesh Ganja, Sandesh Panchal & Raghvendra C.R for the Petitioner.
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Jitendra B. Mishra, Saket Ketkar, Ashutosh Mishra, Rupesh Dubey & Ms Jyoti Chavan, Addl. G.P. for the Respondent.
Facts of the Case
The petitioner, a statutory university established under the Maharashtra Public Universities Act, 2016, collected affiliation fees from colleges for granting and continuation of affiliation in discharge of its statutory functions, including inspection, verification, and infrastructure assessment. The department issued a show cause notice under section 74 of the CGST Act proposing levy of GST, along with interest and penalty, on the affiliation fees collected during FY 2017-18 to 2022-23. The demand was confirmed through an order-in-original and the rectification application filed by the University was also rejected. The University challenged the levy before the Bombay High Court contending that grant of affiliation was a statutory and regulatory function and not a commercial activity or “supply” under sections 7 and 9 of the CGST Act.
High Court Held
The Bombay High Court held that grant of affiliation by the University was a statutory and regulatory function undertaken in furtherance of educational objectives and not in the course or furtherance of business. The affiliation fees collected for inspection, verification, and related statutory activities could not be treated as consideration for a taxable supply under section 7 of the CGST Act. Accordingly, the Court held that GST was not leviable on affiliation fees and the proceedings initiated under section 74 lacked jurisdiction. The impugned show cause notice, order-in-original, and rectification order were therefore quashed.
List of Cases Reviewed
- Goa University v. Joint Commissioner of Central Goods and Service Tax [2025] 173 taxmann.com 562/96 GSTL 513 (Bombay)/2025 SCC OnLine Bom 1262 (para 30)
- Principal Additional Director General, DGGSTI v. Rajiv Gandhi University of Health Sciences (2024) 22 Centax 526 (Kar.) (para 30)
- Rajasthan Technical University v. Union of India [D.B. Civil Writ Petition No. 9556 of 2024, dated 23 – 2 – 2026] (para 30), followed
- Bharathidasan University v. Joint Commissioner of GST (ST-Intelligence) [2026] 183 taxmann.com 565/114 GST 637/107 GSTL 183 (Madras)/2026 SCC OnLine Mad 1190 (para 32) distinguished
List of Cases Referred to
- Union of India v. VKC Footsteps India (P.) Ltd. [2021] 130 taxmann.com 193/52 GSTL 513 (SC) (para 10)
- All India Federation of Tax Practitioners v. Union of India 2008 taxmann.com 1072/[2007] 9 VST 126 (SC) (para 10)
- Goa University v. Joint Commissioner of Central GST [2025] 173 taxmann.com 562/96 GSTL 513 (Bombay) (para 12)
- Principal Additional Director General, DGGSTI v. Rajiv Gandhi University of Health Sciences (2024) 22 Centax 526 (Kar.) (para 12)
- Principal Additional Director General v. Rajiv Gandhi University Of Health Sciences [Special Leave Petition (Civil) Diary No. 59470 of 2024, dated 24 -1 – 2025] (para 12)
- Rajasthan Technical University v. Union of India [D.B. Civil Writ Petition No. 9556 of 2024, dated 23 – 2 – 2026] (para 13)
- Bharathidasan University v. Joint Commissioner of GST (ST-Intelligence) [2026] 183 taxmann.com 565/114 GST 637/107 GSTL 183 (Madras) (para 32).
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