Education Consultancy Classed as Intermediary Due to Commission-Linked Enrolments | AAR

Case Details: Maryland Study Abroad (P.) Ltd., In re - [2025] 179 taxmann.com 541 (AAR-KERALA)

Judiciary and Counsel Details

• Jomy Jacob & Mansur M.I., Member
• Subin Babu, CA for the Applicant.

Facts of the Case

The applicant, an education consultancy service provider, submitted that it facilitated admissions to foreign universities by identifying, guiding, and referring prospective students under a Recruiting Service Agreement. Under the agreement, students paid tuition directly to the universities, and the applicant earned commission contingent on actual enrollments. It was contended that it acted on a principal-to-principal basis and did not supply education on its own account, seeking a determination on whether its services qualified as intermediary services. The matter was accordingly placed before the Authority for Advance Ruling (AAR).

AAR Held

The AAR held that the education consultancy services constituted intermediary services under Section 2(13) of the IGST Act. It was observed that the commission-linked arrangement, the absence of a fixed retainer, and the applicant’s role in identifying, guiding, and channelling students demonstrated that it merely facilitated the supply of education between the universities and the students. It was further noted that the applicant did not supply educational services on its own account, and the facilitation was contingent entirely on successful student enrollments. Accordingly, the services were classified as intermediary services.

List of Cases Referred to

• Center for International Admission and Visas (CIAV), In re [TSAAR Order No. 09 of 2024, dated 1-2-2024] (para 4.10)
• Global Reach Education Services (P) Ltd, In re [Advance Ruling No. 15/WBAAR/2018-19, dated 8-5-2018] (para 7.9.1)
• DKV Enterprises (P). Ltd, In re [Advance Ruling No. AAR/AP/02(GST)/2020, dated 27-2-2020] (para 7.9.1)
• Vishakhar Prasad Bhave, In re [Advance Ruling No. GST-ARA-03/2017-18/B-07, dated 22-1-2018] (para 7.9.1)
• Sabre Travel Network India (P). Ltd, In re [Advance Ruling No. GST-ARA-01/2017-18/B-01, dated 9-1-2018] (para 7.9.1)
• Global Reach Education Services (P). Ltd., In re [Order No. 06/WBAAAR/Appeal/2019, dated 20-3-2019] (para 7.9.1)
• Ushabala Chits (P) Ltd, In re [Order-in-Appeal No. AAAR/AP/03(GST)/2020, dated 22-6-2020] (para 7.9.1)
• Dharmendra M. Jani v. Union of India [2023] 76 GSTL 297 (Bom.) (para 7.9.1)
• Sunrise Immigration Consultants Put. Ltd. v. CCE [Final Order No. 62104 of 2018, dated 3-8-2018] (para 7.9.4).