EXPORT OF SERVICES TAXABLE OR NOT

[PARALIJAYAPALAN ANILKUMAR]

ABC Consultant……, is engaged in the business of counselling and guiding prospective students as well as processing and assisting students to secure admission to various universities and other foreign educational institutions in various countries (FEI, in short)utilizing its knowledge base and other skills pertaining to higher education. ABC provides number of services in the following areas:

Expert Counselling

Preparation of application for various Institutions

Visa Information

Promotional activities

Scholarship Information and Assistance

Educational Loan Assistance

International Travel Assistance

Foreign Exchange Guidance with Forex Guidance

ABC is empaneled with various FEIs; and has an agreement for receiving a fee on successful admission of the student. Similar agreement might have been entered by these FEIswith other similar consultants in India.

Every consultant in India including ABC is aware about maximum number of seats of Indian students (course wise) in a given FEI.

ABC has a data base of prospective students based upon its study and enquiry by the students. Every year, looking at the interest, caliber and financials of the student, ABC shortlistsfew FEIs, with whom he has pre-existing agreement, for that student.

These names are forwarded to the all the respective FEIs, who carries on further admission process of the student.

If the students gets admission from any one of the FEI, ABC becomes eligible for his service charges, which, generally, is based as a percentage of the fee.

On successful admission, ABC gets a remuneration from concerned FEI in convertible foreign exchange.

Question: Whether receipt of such consideration is subject to GST?

AI Summary

Intermediary service classification determines whether consultant fees to foreign institutions qualify as export of services under GST.
Whether fees paid by foreign educational institutions to an Indian consultant are export of services depends on whether the consultant is an intermediary and the statutory place of supply. If treated as intermediary services, place of supply is the supplier's location (India) and the receipts do not qualify as export of services. Alternatively, characterization and the specific contractual terms may lead to a contrary result, making taxability dependent on factual and contractual analysis and statutory conditions for zero-rating.