Case Of: Maryland Study Abroad Pvt. Ltd.
Issued By: Kerala Authority for Advance Ruling (AAR)
AAR Rules Education Recruitment Services as Intermediary Due to Enrolment-Based Commission
The applicant, an India-based education consultancy, was engaged by multiple overseas universities to promote academic programs, counsel prospective students, and support them through the admission process.
Its remuneration model was commission-based, with the consultancy earning a fee only when a student successfully enrolled with the foreign university; consideration was received in convertible foreign exchange.
To confirm the tax position, the applicant sought an advance ruling on whether these activities constituted export of services, given that the contractual recipient was situated outside India.
It submitted that the services were performed on its own account, involved independent marketing and advisory functions, and therefore should not be treated as intermediary services under the IGST Act.
The AAR examined the linkage between the applicant’s remuneration and student enrolments and noted that the payment structure indicated facilitation of
admissions rather than standalone advisory or marketing work.
The authority observed that the applicant’s role – counselling students, coordinating documentation, and assisting in the admission process – effectively enabled the supply of education services by the foreign universities to Indian students.
On evaluating the conduct of the arrangement, the AAR held that the applicant was not supplying services on its own account but was arranging and assisting the main supply, fitting the definition of “intermediary” under Sec 2(13) of the IGST Act.
Applying Sec 13(8)(b), the AAR concluded that the place of supply was the location of the supplier in India, and therefore the services did not qualify as export of services and attracted GST.