Indian study-abroad sector welcomes GST relief after Supreme Court ruling

By Siya September 18, 2025
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India’s study-abroad consultancy sector has expressed relief and optimism following a Supreme Court decision and a subsequent recommendation by the GST Council that could reshape the way commissions from international universities are taxed.

On 25 August, the Supreme Court of India dismissed a petition filed by the Goods and Services Tax (GST) department against KC Overseas Education, upholding an earlier ruling that services provided by Indian entities to foreign universities for student recruitment do not qualify as “intermediary” supplies. This landmark judgement confirms that commission earned in foreign currency from overseas universities will be treated as export of services, exempting it from GST.

Pankaj Agrawal, CEO and co-founder of KC Overseas, described the verdict as a “pivotal moment for the overseas education ecosystem in India”, emphasising that it would allow consultants to reinvest in technology, expand student services, and improve global reach. His comments were echoed by sector leaders who believe the ruling will strengthen India’s competitiveness in the international education value chain.

The GST department had previously argued that consultants acted as intermediaries and pursued several firms for unpaid taxes, with cases involving demands totalling over Rs. 3,000 crore. The new ruling, however, sets a strong precedent that could benefit hundreds of consultancies working directly with international universities.

Adding to the relief, the GST Council has recommended amending the IGST Act to remove ambiguity over “intermediary services”. The proposed changes would ensure that the place of supply is determined by the location of the recipient of services, a move expected to boost India’s education export sector.

Industry associations such as the Association of Australian Education Representatives in India (AAERI) have welcomed the government’s response, highlighting the years of lobbying and submissions that contributed to the outcome. Experts believe the twin developments will improve compliance, enhance transparency, and provide long-term stability for education consultants across India.

The decisions not only safeguard margins but also align India’s policies with international best practices, potentially strengthening the country’s position as a trusted partner in global higher education.

Source: THE PIE NEWS

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