GST
TRT-2025-
High court of Bombay
Date:-03-03-25
In:-
Issue Favourable to Tax Payer ?:-
Order date: 03 Mar 2025
Parties: KC Overseas Education Pvt. Ltd., Nagpur v. Union of India & Ors.
Facts -
- Petitioner (KC Overseas Education Pvt. Ltd.) facilitates admissions for Indian students into foreign universities. The universities abroad pay consideration directly to the petitioner in foreign currency.
- Department treated petitioner as an intermediary, denied export benefit, and rejected refund. Petitioner challenged rejection order dated 07.03.2024 passed by Additional Commissioner (Appeals).
Issue -
- Whether services provided by KC Overseas to foreign universities amount to “export of services” under Section 2(6) IGST Act or are taxable in India as intermediary services.
Order -
- Supreme Court dismissed revenue SLP, thereby upholding the High Court ruling that services relating to admission of Indian students into foreign universities qualify as export of service.
- The division bench of the Hon’ble high court applied Section 2(6) IGST Act and held that definition of export of services must be read holistically, especially with Section 2(93) (“recipient”) and Section 13(2) (place of supply).
- Following Ernst & Young Ltd. V. Addl. Commr. CGST (Delhi HC), it held that services rendered to foreign universities qualify as export, since the recipient and payment source is located abroad. It also relied on Service Tax Tribunal’s 2023 order in petitioner’s own case, holding that services are provided to universities, not students in India, and thus do not fall within “intermediary” definition (same under service tax & GST).
- Consequently, the impugned order of 07.03.2024 was quashed, petitions allowed, and petitioner held entitled to refund of GST paid, subject to receipt of consideration in foreign currency.
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