Supreme Court Allows GST Refunds for Education Consultancies Working with Foreign Universities

The Supreme Court held that educational consultancy services provided to foreign universities on a principal-to-principal basis amount to export of services and are therefore eligible for GST refunds.

The dispute arose after tax authorities denied a refund to an education consultancy because it functioned as an “intermediary” under the IGST Act.

The Court ruled that such entities cannot be classified as intermediaries merely because Indian students derive benefit from the services. It held that Global Opportunities does not fall within the definition of intermediary under Section 2(13) of the IGST Act.

The Court rejected the Revenue’s contention that the firm acted as an agent of foreign universities.