Staff Reporter
Panaji
The High Court of Bombay at Goa has ruled that the activities of Goa University are not commercial in nature and therefore not subject to Goods and Services Tax (GST).
The judgment came in response to a petition filed by the University under Article 226 of the Constitution challenging a showcause notice issued on August 5, 2024, by the Joint Commissioner of Central Goods and Services Tax (CGST), Goa Commissionerate.
The notice had proposed the imposition of GST on the University’s educational activities. The Court held that there was a complete absence of jurisdictional facts to issue the impugned notice. “We are of the opinion that the activities of the petitioner University not being commercial in nature, are not amenable to GST,” the Court stated.
A senior counsel appearing for the University argued that there was no jurisdiction under the legislation to charge GST on education-related activities. It was submitted that Goa University, established by State legislation, does not fall under the definitions of ‘Government’ or ‘local authority’, and hence clause 2(17)(i) of the CGST Act, 2017 does not apply. The University’s functions, the counsel argued, do not fit the definition of “business” under clauses (a) to (c) of Section 2(17) of the Act.
The petitioner’s counsel further maintained that educational activities do not qualify as a supply of services under the GST regime, as they are not in the nature of trade, commerce, manufacture, profession, vocation, or adventure.
The Court also noted that income earned through rent or licence fees from staff or teachers is exempt from tax, as such earnings are residential in nature and constitute services rendered to faculty.
