GST on Education Consultancy: Export of Services and Student Fees
Commission from foreign universities is an export of service, while fees from students remain taxable under GST.
- Ruling
- NO.GST-ARA- 29/2020-21/ 642, Mumbai, dt. 30.12.2025
- Dated
- 30 Dec 2025
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Commission from foreign universities qualifies as an export of service.
- Export status allows for a refund of accumulated input tax credit.
- Consultation fees charged to students are taxable supplies.
- Services provided to students for free are not liable to GST.
In short
The company asked the Maharashtra Authority for Advance Ruling (AAR) if their student recruitment services for foreign universities count as an export of services under GST. They also wanted to know if fees charged to students are taxable and if free promotional services attract tax. The authority clarified that the commission from abroad is an export, but local student services are separate taxable transactions.
What has changed
How it worked before
Many education consultants were unsure if their commission income from foreign universities should be treated as an 'intermediary service,' which would make it taxable, or as an 'export of service,' which is tax-free.
What has changed
The authority ruled that the company acts on its own behalf, not as an intermediary, meaning the commission is an export of service. This allows the business to claim a refund for the GST paid on their own business expenses. However, any fees collected from students in India are treated as a separate local service and must have GST applied.
Who this affects
Education consultants, study abroad agencies, and recruitment firms working with foreign universities.
An example
A study abroad agency in Pune helps students apply to universities in Canada and receives a commission from those universities. They also charge students a fee for visa assistance. Based on this ruling, the agency does not pay GST on the foreign commission and can claim a refund for GST paid on office rent. However, they must continue to collect and pay GST on the visa assistance fees charged to students.
What you should do
If you run a similar consultancy, review your contracts to see if you act as a principal or an intermediary. Remember that this ruling only applies to the company that asked for it; your local tax officer may still hold a different view. Consult with your tax advisor before changing your GST filing or claiming refunds.
If you do nothing
If you assume this ruling applies to you and stop paying GST on your student fees or claim refunds without proper legal backing, you risk a tax audit. A tax officer may disagree with your interpretation, leading to demands for unpaid tax, interest, and heavy penalties. Always seek a professional opinion specific to your business structure.
The terms explained
- Export of services
- Services provided from India to a recipient located outside India where the payment is received in foreign currency and the service is not consumed in India.
- Intermediary
- A person who arranges or facilitates the supply of goods or services between two other parties, often acting as an agent rather than a principal.
- Input tax credit
- The GST paid by a business on its own purchases or expenses that can be used to reduce the tax payable on its own sales.
The ruling in detail
Authority for Advance Ruling
M/s. EDUGUIDE OVERSEAS STUDIES PRIVATE LIMITED
NO.GST-ARA- 29/2020-21/ 642, Mumbai, dt. 30.12.2025 · Maharashtra
Questions before the authority
- Whether the service of providing students to foreign universities against commissions from them comes under Export of services and no GST is chargeable and whether refund can be claimed on the accumulated input tax credit?
- Fees charged from students is ancillary service, is it liable to GST?
- In case, where no fees is charged from the students under promotional offer, how GST will be attracted in this transaction?
Facts
The applicant is a private limited company that provides consultation and marketing services to foreign universities to facilitate student admissions. In return, the applicant receives a commission in foreign currency from the universities. Additionally, the applicant provides services to students in India, such as guidance on applications, loans, and visas, for which they charge fees or provide services for free under promotional offers.
Ruling
| Question | What the authority ruled |
|---|---|
| Export of services status for commission from foreign universities | Qualifies as Export of Services and eligible for refund subject to verification Contractual relationship and consideration are directly between applicant and foreign university |
| GST liability on fees charged to students | GST is leviable Considered a supply under Section 7(1) of the CGST Act |
| GST liability on free services to students | No GST is leviable Does not qualify as a supply |
The authority ruled that the services provided to foreign universities qualify as an export of services, making them eligible for a refund of input tax credit. However, services provided to students in India for a fee are considered a taxable supply under the GST Act. Services provided to students for free under promotional offers do not qualify as a supply and are not liable to GST.
Reasoning
The authority determined that the applicant acts on a principal-to-principal basis with foreign universities, thus the services do not constitute **intermediary services** under Section 2(13) of the IGST Act. Consequently, the services meet the criteria for **export of services** under Section 2(6) of the IGST Act. Regarding services to students, the authority held that these are independent supplies under Section 7(1) of the CGST Act and do not qualify as a composite supply with the services provided to universities. Finally, services provided without consideration do not meet the definition of supply under the Act.
Provisions relied on
- Section 2(6) of the IGST Act, 2017
- Section 2(13) of the IGST Act, 2017
- Section 7(1) of the CGST Act, 2017
- Section 13(2) of the IGST Act, 2017
- Section 97 of the CGST Act, 2017
- Section 98 of the CGST Act, 2017
For the practitioner
This ruling provides significant relief to education consultants by confirming that commission income from foreign universities qualifies as an **export of service** and is not subject to the restrictive intermediary provisions. It clarifies that services provided to students in India are distinct taxable supplies, unless provided free of charge. Practitioners should note that the ruling relies heavily on recent judicial precedents regarding the definition of an intermediary.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/1-eduguide_hp_india_konkan_lng-1.pdf
Legibility of the scan, as read: high.
Prepared 12-10-2026.
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