The Supreme Court bench of Justice B.V. Nagarathna and Justice Satish Chandra Sharma has dismissed the Special Leave to appeal filed by the Department against the Bombay High Court’s ruling, holding that services rendered by overseas education consultants to foreign universities cannot be classified as “intermediary services” under the Goods and Services Tax (GST) framework. Instead, such services qualify as “export of service.”
This is the first authoritative ruling under GST law specifically addressing the overseas education consulting sector, providing much-needed clarity to thousands of consultants who facilitate admissions for Indian students in foreign universities.
Background of the Case
The Department had earlier contended that education consultants working on behalf of foreign universities merely acted as “intermediaries,” arranging or facilitating the supply of services between universities abroad and students in India. On this basis, the Department sought to levy GST on their commission income.
However, the Bombay High Court had ruled in favour of the consultants, holding that the primary service was rendered to the foreign university, which is located outside India, and the payment consideration also flows from the foreign entity. Accordingly, the service satisfies the criteria of “export of service” and is not liable to GST.
The Supreme Court’s dismissal of the Department’s appeal has now sealed the matter in favour of the industry.
Key Implications of the Judgment
The judgment marks a turning point for the education consultancy sector. With the apex court’s ruling, the following critical questions now arise for consultants:
Whether to Treat Services as Export and Stop Paying GST?
Consultants will need to revisit their GST positions. Since the services are now officially recognized as exports, they may no longer need to charge or pay GST on commission income received from foreign universities.
Whether to Claim Refund of GST Already Paid?
Consultants who have been paying GST under protest or otherwise may be eligible to claim refunds of taxes paid for previous years, subject to the time limits and conditions under the GST law.
How to Handle Ongoing Litigation with the GST Department?
Several consultants are currently facing notices and demands from the GST authorities. This ruling provides them with a strong legal foundation to contest such litigation. Many cases pending before appellate authorities may now be resolved in line with this decision.
Case Details
Case Title: The Union Of India Versus Kc Overseas Education Pvt Ltd Nagpur
Case No.: SLP Nos.21104-21105/2025
Date: 25-08-2025
Counsel For Petitioner: S Dwarakanath, A.S.G.
Counsel For Respondent: V Sridharan, Sr. Adv.
Read More: GST Hike Makes IPL Tickets Costlier; Fans to Pay Up to 40% Tax from September 22
