GST ON SERVICES PROVIDED BY OVERSEAS EDUCATION CONSULTANTS

[Kush Kalra]

Good Evening,

The Honble Supreme Court upheld the decision of Nagpur bench that services provided by overseas education consultants is export of services on 01st Sep 2025 in the case of KC overseas and accordingly it was held as zero rated supply, later the definition of intermediary was changed in 56th council meet that the place of supply will be the location of recipient and not location of service provider, the following are my queries w.r.t same:  

1) Have these changes been notified in the Act, if notified will these be considered retrospectively and can we claim GST Refund if taxes have already been paid on outward supply @18% on such services.

2) Since the definition of intermediary was changed in the 56th council meeting outcome, it is automatically applicable from 22nd Sep 2025 and currently there is no need to discharge tax on these services and accordingly we should consider them as Export of Services in current GST Returns even if not notified following the Supreme Court Judgement dated 01st Sep 2025.

Thanks and Regards

[Sadanand Bulbule]

1.The 56th GST Council recommendation changing the intermediary place-of-supply rule has not yet been notified in the IGST Act; hence it has no legal force or retrospective effect as of now, and refund of GST already paid cannot be claimed merely on the basis of the Council decision—refunds must be justified independently under existing law and judicial rulings.

2. However, the Supreme Court judgment dated 01-09-2025 in KC Overseas [2025 (9) TMI 469]  is binding; therefore, where facts are identical and services qualify as export (principal-to-principal, foreign recipient), such supplies can be treated as zero-rated exports in current GST returns, even without waiting for notification of the Council recommendation.

[Ryan Vaz]

• Has the change been notified? — The GST Council recommended omission of S.13(8)(b) on 3-Sep-2025, and the Central Government/CBIC issued a set of notifications and amendment rules on 17-Sep-2025 giving effect to the Council’s package with effective date 22-Sep-2025. Those notifications operationalise the new place-of-supply approach for intermediaries (location of recipient) from 22-Sep-2025.

• Retrospectivity & refund for taxes already paid (earlier periods) — The Supreme Court KC Overseas order strengthens the legal basis to claim refunds for tax wrongly paid on such supplies. Refund claims are possible under Section 54 (Form GST RFD-01) subject to the two-year limitation and standard documentary proof (invoices, forex remittances, contractual terms). However, recent amendment-rules/notifications contain transitional/clarificatory language (and some rule insertions) that may limit automatic refunds in certain narrowly specified situations — i.e., the CBIC’s rule changes include explanations/conditions that can affect refund availability for taxes already discharged before commencement — therefore refunds are available subject to procedural rules, time-limits and possible litigation/dispute with Revenue. 

• Should you treat such services as export in current returns before/after 22-Sep-2025? — Where facts match KC Overseas (direct contract with foreign university, recipient outside India, consideration in convertible foreign exchange, not a classic “intermediary”), the Supreme Court judgment is binding on facts like those in the case — you can treat such supplies as export (zero-rated) for returns going forward (and for periods covered by the judgment) but must keep contemporaneous documentation, and note that the government’s notifications made the place-of-supply rule explicit effective 22-Sep-2025. For periods prior to the SC order / notification, clearly preserve evidence and be prepared to file refund claims or face assessments; consider disclosure in returns and cautious posting where risk tolerance is low.

[Sadanand Bulbule]

Dear Vaz Sir

Plz share the notification/amendment dated 17/09/2025 relevant to the issue under discussion.

[Shilpi Jain]

The Court has held that the services are not intermediary services and thereby export. The amendment has no relevance for this. So from day 1 these services provided can be regarded as export and any taxes paid refund can be claimed within the time limit under the law.

AI Summary

Overseas education consultant services may be zero-rated exports where contractual facts show principal-to-principal foreign supply. A judgment in KC Overseas (01-09-2025) held that services by overseas education consultants that involve direct contracts with foreign institutions and recipients outside India are not intermediary services and may be treated as export of services and zero-rated. The GST Council recommended changing the intermediary place-of-supply rule; respondents disagree on notification status-one reports notifications dated 17-09-2025 effective 22-09-2025, another says no notification-affecting retrospective relief. Refunds for taxes paid are available subject to Section 54, limitation periods, documentary proof, transitional rules and possible dispute with revenue.