In re Maryland Study Abroad Private Limited (GST AAR Kerala)
The Kerala Authority for Advance Ruling (AAR) has delivered a pivotal decision concerning the GST classification of services provided by study abroad consultancies. In the case of In re Maryland Study Abroad Private Limited, the AAR ruled that the services offered by such consultancies, even when provided to foreign educational institutions on a principal-to-principal basis, are to be treated as intermediary services and not as an export of services. This distinction has significant implications for the taxability and compliance of many education consultancy firms operating in India.
The applicant, Maryland Study Abroad Private Limited, a private education consultancy, facilitates the admission of Indian students into foreign universities and colleges. They engage in marketing, recruitment, and referral services for these institutions, operating under agreements with them. The core of the applicant’s contention was that they provided independent consultancy services on their own account, thus qualifying for “export of services” under Section 2(6) of the IGST Act, as they receive payments in foreign currency and the services are supplied to recipients located outside India. They argued that they were not merely arranging or facilitating the supply of education between two other parties, but were providing distinct marketing and recruitment services.
