While Jaiswal angrily confronted the on-field umpires after he was given out, Indian captain Rohit Sharma conceded the opener had made contact with the ball.
The problem for Sharma is the video review process - "snicko" suggested there had been no edge, but the raw video showed a clear deviation.
Jaiswal had made 84 and loomed as his team's last slim hope for a draw when he tried to hook Pat Cummins.
The Australians immediately reviewed the not-out call for caught behind and that prompted a lengthy look at the footage by the third umpire, Bangladesh's Sharfuddoula.
Indian fans roared their approval when the "snicko" was played on the scoreboard, but ultimately Jaiswal was given out.
"Really, I don't know what to make of that, because the technology didn't show anything. With the naked eye, it seemed that he did touch something," Sharma said.
"I don't know how the umpires want to use the technology, but in all fairness I think he did touch the ball.
"It's about the technology, which we all know is not 100 per cent. It's just that ... more often than not, we are the ones falling on the wrong side of it. I feel we were a little unfortunate."
Jaiswal was India's big hope after bringing up his half century. (James Ross/AAP PHOTOS)
Australian captain Pat Cummins had no doubt Jaiswal was out.
"It was clear that he hit it - heard a noise, saw deviation. I was absolutely certain," he said.
"As soon as we referred it, you could see him drop his head and basically acknowledge he hit it.
"(Snicko), I don't think anyone has complete confidence in. Fortunately there was enough other evidence to show it was clearly out."
Former umpire Simon Taufel said on the Seven Network that the third umpire made the right call, saying the deflection was conclusive on the video, regardless of snicko.
After he attempted a rash single in the first innings and was run out for 82 when Virat Kohli refused to take the run, Jaiswal was the subject of further controversy on Monday.
Apart from his dismissal, he was given not out when on 31 after an lbw appeal from Mitchell Starc. The Australians reviewed the call and the video strongly suggested the ball would have hit the top of leg stump, but the final decision was to stay with the umpire's call.
"It was really close - Starcy really liked it, Kez (wicketkeeper Alex Carey) thought it was a very good chance of hitting a lot of leg stump ... it must have been close," Cummins said.
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