FOREIGN STUDENT ENROLLMENT AGENT

The services provided by the Indian agent to the Singapore Company cannot be considered an export of service under GST rules because the place of supply appears to be India, given that the services are performed here and are related to activities within India (gathering students and completing paperwork). Therefore, despite the recipient being outside India and the payment potentially being in foreign exchange the nature of the services suggests that they are not exports under GST laws.  

It can qualify as export of services, if the Indian agent is providing the service to the Singapore company as principal—not acting as its agent or intermediary in arranging a supply between the Singapore company/universities and students. Under section 2(6) of the IGST Act, the supplier must be in India, the recipient outside India, the place of supply outside India, payment received in convertible foreign exchange or permitted INR, and supplier and recipient must not be merely establishments of the same person.

The key issue is the nature of the Indian agent’s role. Gathering students and completing application paperwork for the Singapore company, which itself assesses applications and decides what to submit, may support a view that the Indian supplier performs a defined service on its own account. But if the Indian agent facilitates or arranges the Singapore company’s or universities’ supply to students, the intermediary restriction in section 13(8)(b) may apply; the place of supply would then be India, so it would not be an export. Review the contract, invoices, payment flow and actual conduct, including who contracts with and charges the students.

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Indian agent recruiting students for a Singapore college:

• The department and many AARs treat education agents recruiting students for foreign institutions as "intermediaries" (arranging supply between the college and students), so the place of supply is the agent's location (Sec 13(8)(b)), i.e. India, and GST at 18% applies; it isn't an export.

• Some argue it's a service on own account to the college (export). Check the latest rulings and any clarification on intermediaries.