Delhi HC Grants CISCE Interim Relief, Questions GST on School Affiliation Services Circulars.
Issue
Whether the CBIC circulars withdrawing the Goods and Services Tax (GST) exemption on services related to educational affiliation are legally valid, or if they are ultra vires (beyond the powers of) the parent exemption Notification No. 12/2017-Central Tax (Rate).
Facts
- The Council for the Indian School Certificate Examinations (CISCE) filed a writ petition in the Delhi High Court.
- The petition challenged CBIC Circulars No. 151/07/2021-GST and 234/28/2024-GST.
- These circulars withdrew the GST exemption previously available for affiliation and related services provided by educational boards.
- The petitioner highlighted that other High Courts (Bombay and Karnataka) had already invalidated these circulars, a view upheld by the Supreme Court through the dismissal of a Special Leave Petition (SLP).
Decision
- The Delhi High Court made a prima facie observation that the department cannot rely on the impugned circulars to demand GST from CISCE.
- It issued a notice to the respondents (Union of India & Ors.) and scheduled the next hearing for December 18, 2025.
- Crucially, the Court granted interim protection to CISCE, preventing any GST demands based on the challenged circulars until the matter is finally decided.
Key Takeaways
- Judicial Precedent is Key: The court heavily relied on consistent rulings from other High Courts and the Supreme Court’s affirmation, indicating a strong judicial consensus that affiliation services are GST-exempt.
- Circulars Cannot Override Notifications: This case reinforces the legal principle that departmental circulars cannot impose a tax liability by contradicting or overriding a statutory notification issued under the Act.
- Immediate Relief: The grant of interim protection provides immediate relief to the educational board, preventing coercive action by tax authorities while the legality of the circulars is under examination.