Promotion, Marketing and assisting recruitment of Foreign university courses are not considered as “Export of Service” hence liable to GST: WBAAAR
Facts: M/s Global Reach Education Services Private Limited, is engaged in promoting the courses of Foreign Universities in India among prospective students. This appeal has been filed against the Ruling dated March 21, 2018 where the Hon’ble AAR, West Bengal after hearing the matter, held that the Applicant was an intermediary service provider and held that “The service of the applicant is not ‘Export of Services’ and are taxable under the GST Act, 2017”.
Issue Involved: Whether the appellant has to determine the liability to pay tax on “intermediary” of the Foreign Universities.
Held: The Hon’ble AAAR, West Bengal vide Order No. 01/WBAAAR/Appeal/2018 dated April 26, 2018, uphold the order of AAR which held that promotion & marketing of various courses of foreign universities among prospective students in India does not constitute “export of services” u/s 2(6) of IGST Act and hence, eligible to GST. AAAR observes that the appellant promotes courses of foreign university, finds suitable prospective students to undertake courses, and in accordance with university procedures & requirements, recruits and assists in recruitment of students, hence, is clearly an ‘intermediary’. As per definition of ‘intermediary’ under Clause (13) of Section 2 of IGST,2017 is “Intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or securities on his own account.