AR of Global Reach Education Services Pvt Ltd
GST – West Bengal AAR – Export of Services –
The Applicant provides Overseas Education Advisory whereby it promotes the courses of foreign universities among prospective students. Whether the service provided to the Universities abroad is to be considered “export” within the meaning of Section 2(6) of the IGST Act, 2017. Hence, a zero-rated supply under the GST.
– HELD –
In the case of Export of Services, all the conditions as laid down under Section 2(6) of IGST Act is to be followed in totality without any violation. And that there is no scope for partial compliance of the conditions laid down therein. The Applicant is facilitating recruitment/enrolment of students to foreign Universities. If promotion of university courses were the principal supply. The applicant should have been remunerated for its promotional activity no matter whether it facilitates recruitment or not.
If the Applicant receives ‘commission’ based on recruitment/enrolment through it. The principal supply is clearly facilitating the foreign university in recruitment/enrolment with promotional services ancillary to the principal supply. Being an intermediary service provider, the place of the Applicant’s supply shall be determined under section 13(8)(b) of the IGST Act and not under section 13(2) of the IGST Act. The place of supply under the above legal framework is the territory of India. As the condition under section 2(6)(iii) of the IGST Act is not satisfied. The Applicant’s service to the foreign universities does not qualify as Export of Services. Therefore, it is taxable under the GST Act.
