In re Salve Maria International (GST AAR Kerala)
In a recent advance ruling, the Kerala GST Authority (AAR) examined the GST applicability on services provided by M/s. Salve Maria International, a consultancy firm assisting students with admissions to foreign universities. The firm, representing various institutions in the UK, Canada, and Australia, argued that its services should be GST-exempt under Notification No. 12/2017. This exemption applies to educational institutions offering recognized qualifications as per Indian law. The firm’s claim was based on the universities’ membership in the Association of Indian Universities (AIU) and the Association of Commonwealth Universities, which recognize mutual degrees. M/s. Salve Maria contended that these memberships qualified the courses as “recognized by law,” thereby exempting them from GST.
The Authority, however, ruled that the courses offered by these foreign universities do not fall under the “recognized by law” provision as outlined in Notification No. 12/2017. Citing the CBIC circular clarifying exemption guidelines, the AAR noted that to qualify as an educational institution under GST law, courses must be recognized by Indian law, specifically through an Act of the Union or State Government. Since these foreign programs are not recognized under any Indian statutory provisions, the services provided by the applicant do not meet the criteria for GST exemption. Therefore, the ruling concluded that M/s. Salve Maria International must charge and remit GST on its services related to foreign university admissions.
