In re Global Educational Consultants (GST AAR Kerala)
Summary: The Kerala Authority for Advance Ruling held that services supplied by Global Educational Consultants to overseas universities for recruiting and enrolling prospective students constitute “intermediary” services within the meaning of Section 2(13) of the IGST Act, 2017.
The applicant represented foreign universities in India, promoted their academic programmes, provided information and brochures, guided prospective students on admission and visa requirements, assisted with applications, received completed applications for submission to universities and communicated admission outcomes and pre-departure information.
Its commission, paid directly by the foreign university, depended upon successful enrolment and continuation of students. Examining the International Agent Agreement, the Authority found that the applicant acted as the University’s “Representative” in India; its authority was restricted, it could not collect fees from students without written consent, its remuneration was contingent on enrolment, and it did not itself provide educational services.
The Authority therefore concluded that the applicant facilitated the principal supply of educational services by the foreign university to prospective students rather than supplying recruitment or consultancy services independently on its own account. It relied on Circular No. 159/15/2021-GST dated 20.09.2021, which explains the three-party and two-distinct-supply structure of intermediary services. The Authority distinguished K.C. Overseas Education Pvt. Ltd. v. Union of India and Ernst & Young Ltd. v. Additional Commissioner, CGST because the factual arrangements in those cases were different, and also distinguished Medway Educational Consultant Pvt. Ltd. v. Commissioner, CGST.
