Delhi High Court Rules Educational Consultancy to Foreign Universities Is Export Service, Not Intermediary
Judgment Ensures GST Refunds and Tax Benefits for Indian Firms Assisting Student Admissions Abroad
Court Clarifies Export Status of Consultancy Services, Dismissing Revenue’s Appeal
By Our Legal Reporter
New Delhi: December 10, 2025:
In a landmark judgment, the Delhi High Court has held that educational consultancy services provided by Indian firms to foreign universities qualify as “export of services” under GST law. The Court dismissed the revenue department’s appeal, ruling that such services cannot be classified as “intermediary services.”
This decision provides clarity for hundreds of Indian consultancy firms that assist students in securing admissions to foreign universities, ensuring they are entitled to GST refunds and export benefits.
Background of the Case
The case involved consultancy firms such as Global Opportunities Pvt. Ltd. and TC Global, which provide services like:
- Student recruitment and counselling.
- Promotional activities for foreign universities.
- Organizing roadshows, fairs, and advertisements.
These firms receive payment in foreign exchange directly from foreign universities. The revenue department argued that such services were “intermediary services” under Rule 2(f) of the Place of Provision of Services Rules, 2012, meaning they were not exports and thus taxable.
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) had earlier ruled in favour of the consultancy firms. The Delhi High Court upheld this ruling, dismissing the revenue’s appeal.
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Court’s Observations
The Division Bench of Justice Prathiba M. Singh and Justice Renu Bhatnagar made several key points:
- Direct Service to Universities: Consultancy firms provide services directly to foreign universities, not as intermediaries between students and universities.
- Export of Services: Since services are rendered to foreign universities and payment is received in foreign exchange, they qualify as exports.
- No Intermediary Role: The firms do not merely arrange or facilitate services between two parties; they perform substantive promotional and recruitment work.
- Revenue’s Appeal Dismissed: The Court found no substantial question of law in the revenue’s appeal, affirming CESTAT’s order.
Legal Significance
This ruling clarifies a long-standing dispute under GST law:
- Export Benefits: Consultancy firms can claim GST refunds and enjoy export incentives.
- Tax Clarity: Removes ambiguity about classification of services, reducing litigation.
- Boost to Education Sector: Strengthens India’s role as a hub for student recruitment and international education services.
Broader Context
India has a large network of educational consultancy firms that help thousands of students every year to study abroad. These firms:
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- Provide counselling and guidance.
- Conduct promotional campaigns for universities.
- Facilitate admissions and visa processes.
By recognizing these services as exports, the Court has aligned India’s GST framework with global practices, where cross-border educational services are treated as exports.
Industry Reactions
- Consultancy Firms: Welcomed the judgment, noting it will reduce compliance burdens and improve profitability.
- Students: Indirectly benefit, as firms can now offer services at lower costs due to tax refunds.
- Legal Experts: Called the ruling a “clarity milestone” in GST jurisprudence.
- Revenue Authorities: May need to revise their approach to similar cases nationwide.
Comparative Perspective
Globally, countries treat cross-border educational consultancy as export services:
- UK & EU: Student recruitment services are considered exports when rendered to foreign universities.
- US: Agencies working for foreign universities are treated as service exporters.
- Australia: Similar classification ensures tax neutrality for education agents.
India’s ruling now aligns with these international practices, boosting competitiveness.
Conclusion
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The Delhi High Court’s ruling that educational consultancy services to foreign universities qualify as export services, not intermediary services is a landmark in GST law. By dismissing the revenue’s appeal, the Court has ensured that consultancy firms receive tax refunds and export benefits, strengthening India’s education services sector.
This judgment will have far-reaching implications, reducing litigation, boosting confidence among consultancy firms, and supporting India’s growing role in international education.
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