Authority: Supreme Court of India
Order Date: 16 July 2026
Case Overview
- Petitioner: Bharathidasan University (represented by its Registrar) challenged a show‑cause notice issued under Section 74(5) of the Tamil Nadu Goods and Services Tax Act, 2017, which demanded GST, interest and penalties on affiliation fees collected from affiliated institutions for FY 2019‑2020 to 2022‑2023.
- The University relied on Notification No. 12/2017 – Central Tax (Rate), which classifies educational and regulatory levies as non‑commercial supplies, thus exempt from GST.
- Conflicting decisions of two Single Benches of the Madras High Court on similar challenges led to a reference to a Division Bench of the High Court.
- The Division Bench held that the service of granting affiliation is a statutory prerequisite outside the scope of “services relating to admissions or conduct of examination” and remanded the matter to the learned Single Judge for residual issues.
- Senior Counsel S. Nagamuthu highlighted that various High Courts have divergent rulings and cited a Karnataka High Court decision upholding exemption for affiliation fees, urging the Supreme Court to settle the recurring issue affecting universities.
- The Court noted an earlier order dated 24 January 2025 (SLP (C) D. No. 59470/2024) which it dismissed, clarifying that dismissal does not merge the decision with the present case, referencing Kunhayammed & Ors. v. State of Kerala (2000 6 SCC 359).
- The Court observed that if it were to rule in favour of the assessee, the University could present that decision before the Single Judge, potentially overruling the Division Bench finding.
Final Outcome
- The Special Leave Petitions (Nos. 17945‑17948/2026) are closed with liberty reserved to the petitioner to challenge the reference order after the Single Judge disposes of the residual issues.
- Any pending applications, if any, are ordered to stand disposed of.
Topics: GST, Higher Education, Judicial Review