University of Mumbai v. Union of India & Others

Background of the Case

In this landmark case, the petitioner, University of Mumbai, a statutory university established under the provisions of the Maharashtra Public Universities Act, 2016, challenged the levy of GST on affiliation fees collected from colleges affiliated to the University. The dispute arose after the GST department initiated proceedings under Section 74 of the CGST Act for the period from FY 2017-18 to FY 2022-23.

The department issued a Show Cause Notice alleging that the affiliation fees collected by the University constituted consideration for a supply of services and were therefore liable to GST under Section 7 read with Section 9 of the CGST Act. According to the department, by granting affiliation and continuing recognition to colleges, the University was providing a service for consideration and was therefore liable to discharge GST on such receipts.