Export of Services: principal-to-principal cross-border supplies qualify as zero-rated exports while paid student services remain taxable.

Export of services depends on place of supply and contractual character: services supplied directly by the applicant to foreign universities on a principal-to-principal basis, with place of supply outside India and payment in convertible foreign exchange, qualify as export of services and are zero-rated with refund of accumulated input tax credit subject to verification. Fees charged to students for consultancy/support are taxable supplies liable to GST because they are consideration-based supplies to domestic recipients. Services provided free of charge under promotional schemes do not constitute a supply and are not subject to GST.

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Issues: (i) Whether services provided by the applicant to foreign universities (with contractual relationship and consideration directly between applicant and foreign universities) qualify as export of services and are eligible for refund of accumulated input tax credit; (ii) Whether fees charged from students as ancillary services are liable to GST; (iii) Whether services provided to students free of charge under promotional offers attract GST.

Issue (i): Whether the applicant's services to foreign universities qualify as export of services and entitle the applicant to refund of input tax credit.

Analysis: The determination requires application of the definition of "export of services" in Section 2(6) of the IGST Act and the place of supply rules in Section 13 of the IGST Act. The conditions in Section 2(6) include (i) supplier in India, (ii) recipient outside India, (iii) place of supply outside India, (iv) payment in convertible foreign exchange (or as permitted), and (v) not establishments of distinct persons. The decisive element is place of supply: intermediary services are treated under Section 13(8)(b) as supplied at the supplier's location. The statutory definition of "intermediary" in Section 2(13) requires arranging or facilitating a main supply between two other parties and excludes a person supplying the main service on their own account. Applying these principles and the cited precedents, where the applicant provides marketing/advertising/consultancy services directly to foreign universities on a principal-to-principal basis, the services are not intermediary services and the place of supply is the location of the recipient (outside India). Given receipt of consideration in convertible foreign exchange and other conditions being satisfied, the services qualify as export of services and are zero-rated with refund entitlement subject to verification.

Conclusion: The services to foreign universities qualify as export of services and are eligible for refund of accumulated input tax credit, subject to statutory verifications.

Issue (ii): Whether fees charged from students as ancillary services are liable to GST.

Analysis: Supply as defined in Section 7(1) of the CGST Act includes services provided for consideration in the course or furtherance of business. The applicant provides consultancy/support services to students for a fee. The ancillary nature of a service does not exempt it from tax and the supplies to students and supplies to foreign universities are to different recipients and cannot be combined as a composite supply in the facts presented.

Conclusion: Fees charged from students for consultancy/support services are taxable and GST is leviable on those transactions.

Issue (iii): Whether services provided to students free of charge under promotional offers attract GST.

Analysis: A supply under the CGST Act requires receipt of consideration, unless covered by Schedule I. Services provided free of charge where no consideration is received do not constitute a "supply" and the instant services are not shown to fall under Schedule I.

Conclusion: Services provided free of charge to students under promotional schemes do not qualify as supply and are not subject to GST.

Final Conclusion: The legal effect is that the applicant's activities are partly treated as zero-rated exports (entitling the applicant to refund subject to verification) while domestic supplies to students for which consideration is received are taxable; promotional free services are not taxable.

Ratio Decidendi: Where a supplier in India provides services directly to foreign recipients under a principal-to-principal contractual arrangement with payment in convertible foreign exchange and the place of supply is outside India, such services qualify as export of services under Section 2(6) of the IGST Act; intermediary classification applies only where the supplier arranges or facilitates a main supply between other parties and does not supply the main service on its own account.

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