In re Eduguide Overseas Studies Private Limited (GST AAR Maharashtra)
The applicant, a private limited company, sought an advance ruling under Section 97 of the CGST Act and MGST Act on three issues: (i) whether commission received from foreign universities for facilitating student admissions qualifies as “export of services” and is eligible for refund of accumulated input tax credit (ITC); (ii) whether fees charged from students in India are liable to GST; and (iii) whether GST applies when services are provided to students free of charge under promotional offers.
The applicant entered into agreements with foreign universities to provide consultation and marketing services, facilitating admissions of Indian students. The universities pay commission in convertible foreign exchange upon successful admissions. The applicant also provides services to students in India, including guidance, application assistance, loan facilitation, visa processing, and e-ticketing, for which fees are sometimes charged. In certain promotional schemes, such services are offered free of cost.
The Authority examined whether the services to foreign universities qualify as “export of services” under Section 2(6) of the IGST Act. It was undisputed that the supplier is located in India, the recipient (foreign universities) is located outside India, payment is received in foreign exchange, and the parties are not establishments of a distinct person. The key issue was whether the place of supply is outside India, and whether the services constitute “intermediary services” under Section 2(13) of the IGST Act, which would attract Section 13(8)(b), deeming the place of supply as the supplier’s location (India).
