Recruitment services to students of foreign universities aren’t ‘Export of services’; taxable under GST

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GST: Applicant was facilitating recruitment / enrolment of students to foreign Universities. Promotional service were incidental and ancillary to above principal supply and applicant was paid consideration in form of Commission, based on performance in recruiting students, as a percentage of tuition fee collected from students enrolled through applicant. Applicant, therefore, represented University in territory of India and acted as its recruitment agent. Thus, whatever services were provided by applicant were only as a representative of University and not as an independent service provider. Accordingly, applicant’s service to foreign universities did not qualify as ‘Export of Services’ and were therefore, taxable under GST.

Citation: [2018] 92 taxmann.com 211 (AAR-WEST BENGAL)