Commissioner of Delhi Goods And Service Tax DGST Vs Global Opportunities Private Limited (Delhi High Court)
Delhi High Court held that Indian Institution providing educational consultation to students in India and Foreign Educational Institution paying commission thereof cannot be considered as intermediary service. Accordingly, writ petition of revenue dismissed.
Facts- The Respondent is engaged in the business of providing educational consultation to Indian students who intend to travel abroad inter alia, to pursue their higher education in foreign universities. The dispute that arises in the present petition is whether the Respondent is acting as an agent of the concerned Universities and whether the Respondent is liable to pay Goods and Services Tax in respect of the commission received from the Universities?
Read SC Judgment in this case: Education Consultancy to Foreign Universities Is Export of Services, Not Intermediary: SC
Conclusion- Held that the Respondent is clearly engaged in educational consultancy services. The Respondent does not act on behalf of any FEI. The Respondent is in fact, engaged by the said FEI for providing consultancy services to students in India and upon the said students obtaining education, the Respondent raises invoices in either Indian Rupees or foreign currency upon the said university/FEI. The Respondent then receives foreign exchange payment from the said university. This relationship between the Respondent and the university or the FEI cannot be held to be an intermediary service as the Respondent is working as an educational consultant and may be rendering services which may further the cause of the FEI but is not an agent of the said FEI. Accordingly, this Court holds that the Respondent’s services when rendered to foreign universities and the earnings being in foreign exchange would not constitute intermediary services. Under these circumstances, the present writ petition does not deserve to be entertained and is, accordingly, dismissed.
