Karnatak University (KUD) in Dharwad has instructed its affiliated colleges to pay an 18% Goods and Services Tax (GST) on affiliation fees dating back to the 2017-18 academic year. This directive follows government instructions and has led to the issuance of notices demanding that colleges settle their accumulated GST dues over the past eight years. Colleges are required to remit these dues in three installments before the affiliation notification for the 2028-29 academic year is released. However, this move has sparked objections from several college managements. A principal from a private college in Dharwad reported that their institution faces a GST liability of around ₹2 lakh and contended that educational institutions should not be subjected to such taxation. In response to these concerns, KUD Vice-Chancellor A M Khan stated that the university would formally request the government for an exemption, citing judicial observations that suggest GST should not apply to affiliation fees. University officials also referenced prior court orders that have granted relief in similar situations, indicating that colleges may pursue legal action against the university's directive.