2026-VIL-163-AAR
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SGST Advance Ruling Authority

GST – Kerala AAR - Section 2(6) and Section 2(13) of IGST Act, 2017 - Export of services or Intermediary Service - Educational consultancy services - Applicant, an educational consultants firm, entered into agency agreement with foreign universities to facilitate recruitment and enrollment of students from India in return for commission payable upon actual enrollment and receipt of tuition fees – Applicant contention that services rendered to foreign universities constitute export of services under Section 2(6) of IGST Act and not intermediary services - Whether the services rendered by applicant to overseas universities for enrollment of students qualify as export of services under Section 2(6) of IGST Act, 2017 - HELD - The applicant performs no independent supply on own account as it neither offers educational courses nor undertakes any part of teaching or academic instruction. The applicant is acting as an agent of the university in India and merely arranging and facilitating admission process between the university and prospective students, thereby constituting intermediary services as defined in Section 2(13) of IGST Act. - The place of supply for intermediary services is determined by the applicable statutory provisions which changed effective 30.03.2026 - For the period up to 29.03.2026, the place of supply was the location of supplier (India) as per clause (b) of Section 13(8) of IGST Act, resulting in services not qualifying as export of services under Section 2(6). Post omission of clause (b) of Section 13(8) effective 30.03.2026, the place of supply is governed by Section 13(2) and determined as location of recipient (outside India), whereby services thereafter qualify as export of services - Services do not qualify as export of services for the period up to 29.03.2026, whereas from 30.03.2026 onwards, the services qualify as export of services – Ordered accordingly - Definition of intermediary - Whether the services are to be classified as intermediary services within the meaning of Section 2(13) of IGST Act, 2017 - HELD - The services constitute intermediary services within the meaning of Section 2(13) of IGST Act. The arrangement involves three parties (university, applicant, prospective students) and two distinct supplies in accordance with the structure prescribed in CBIC Circular No. 159/15/2021-GST dated 20.09.2021 for intermediary arrangements - The main supply is educational services by the university to students, and the applicant's function is to arrange and facilitate such main supply between the two principals - The applicant is acting as an agent of the university evidenced by the agreement. The applicant's restricted authority as demonstrated by restrictions on collecting fees directly and incurring obligations without prior consent signifies that applicant acts under control of the principal and not on its own account - The applicant's remuneration is contingent upon successful completion of enrollment and continuation of student enrollment with the university, establishing no direct nexus between consideration and claimed recruitment services. The applicant neither offers educational courses nor undertakes teaching, academic instruction or delivery of educational services. The applicant merely facilitates the provision of educational services by the university to prospective students and does not supply the underlying services on its own account, thus satisfying the definition of intermediary under Section 2(13) of IGST Act, 2017.
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