The Rajasthan High Court, Jaipur Bench, in Principal, Dayanand College, Ramganj, Byavar Road, Ajmer v. Union of India & Ors., D.B. Civil Writ Petition No. 12943/2026, dealt with the levy of GST on affiliation fees and its recovery as a pre-condition for renewal of affiliation for the academic session 2025–2026. The order was passed on 22 July 2026 by the Division Bench comprising Justice Arun Monga and Justice Ashutosh Kumar.
Background of the Dispute
The petitioner challenged an order dated 8 July 2026 issued by the Director Education, Directorate of Education, Sri Karan Narendra Agriculture University, whereby the college was directed to deposit GST on the affiliation fee before renewal of its affiliation could be granted. The petitioner contended that affiliation is not a taxable service and, therefore, the proposed GST levy and demand were legally unsustainable.
Rajasthan High Court Relies on Rajasthan Technical University Ruling
Both sides agreed before the Court that the controversy had already been settled by the Rajasthan High Court in Rajasthan Technical University v. Union of India, decided on 23 February 2026.
In that judgment, the Court had held that grant of affiliation by a university is a statutory and regulatory function undertaken for fulfilling its educational mandate. Such affiliation cannot be equated with trade, commerce or an activity of commercial character and, therefore, does not constitute a “supply of service” under Section 7 of the CGST Act read with the definition of business under Section 2(17).
The earlier judgment further held that affiliation fees do not constitute consideration for a taxable supply because affiliation is compulsory for colleges and lacks the elements of choice, bargaining and reciprocity normally associated with a commercial transaction.
Affiliation Services Covered by GST Exemption
The Court also reproduced the finding in Rajasthan Technical University that, even if affiliation were assumed to be a service, it remains inseparably connected with educational activities such as curriculum approval, student admission, conduct of examinations and conferment of degrees.
Accordingly, affiliation services were held to fall within the exemption available under Entry 66 of Notification No. 12/2017-Central Tax (Rate). The Court had specifically observed that affiliation by a university forms part of the institutional framework through which education is delivered and cannot validly be subjected to GST merely on the basis of executive circulars or clarifications.
The precedent also recognised that universities perform functions comparable with educational boards in relation to examinations and academic regulation and held that affiliation services fall within the exempt services contemplated under Entry 66(a) as well as Entry 66(b)(iv).
GST Demand as Condition for Affiliation Renewal Not Sustainable
Since the legal issue stood concluded by the earlier Division Bench judgment, the Rajasthan High Court disposed of the writ petition in terms of Rajasthan Technical University v. Union of India.
Consequently, the direction requiring Dayanand College to deposit GST on affiliation fees as a pre-condition for renewal of affiliation could not survive independently of the binding principle that levy and collection of GST on such affiliation fees is legally unsustainable. All pending applications were also disposed of.
Key Legal Takeaway
The ruling reinforces the Rajasthan High Court’s position that grant of affiliation by an educational university is a statutory and regulatory function rather than a taxable commercial service. Affiliation fees do not represent consideration for a taxable supply and, even otherwise, affiliation services are covered by the educational-services exemption under Entry 66 of Notification No. 12/2017-Central Tax (Rate).
Accordingly, GST cannot be insisted upon on affiliation fees as a condition precedent for renewal of a college’s affiliation.
Case: Principal, Dayanand College, Ramganj, Byavar Road, Ajmer v. Union of India & Ors.
Court: High Court of Judicature for Rajasthan, Jaipur Bench
Case No.: D.B. Civil Writ Petition No. 12943/2026
Neutral Citation: 2026:RJ-JP:28146-DB
Date of Order: 22 July 2026
Coram: Justice Arun Monga and Justice Ashutosh Kumar
Subject: GST on Affiliation Fees / Educational Services