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Supreme Court Declares Commission Earned in Foreign Currency from International Universities Exempt from GST

Sep 04, 2025

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KC Overseas Education Pvt. Ltd. has achieved a monumental victory at the Supreme Court of India, a judgment that promises to reshape the future of the overseas student recruitment industry across the country.

The Supreme Court dismissed a Special Leave Petition filed by the GST department against KC Overseas Education, upholding the Nagpur bench of the Bombay High Court's ruling from 3rd March 2025. The verdict establishes that commissions earned by Indian study abroad consultants from international universities in foreign currency will be treated as export of services, and therefore, will remain exempt from GST.

For KC Overseas, this represents far more than a courtroom victory. It comes after years of legal battles and perseverance, making the recognition even more meaningful. “This achievement extends beyond our organisation; it belongs to the entire study abroad community. A heartfelt thank you to everyone in the industry for their support and good wishes!” said Mr. Pankaj Agrawal, Co-founder and CEO of KC Overseas Education.

For both GST registered and unregistered partners, the ruling has brought much-needed relief. Unregistered partners will now receive their full commission earnings without an 18% GST deduction, boosting their profitability. Meanwhile, registered partners benefit from KC Overseas’ transition to Mihan’s Special Economic Zone (SEZ) in Nagpur, which classifies supplies to SEZ units as zero-rated inter-State supplies under Section 7(5)(b) of the IGST Act, 2017. This means no GST needs to be charged on invoices raised to KC Overseas, ensuring clarity and benefits for all.

The domino effect of this Supreme Court judgement will be profound. Study abroad consultants in India can now operate with healthier margins, enabling them to invest in technology, elevate their student support services, and expand their reach. For the broader sector, it delivers much-needed clarity on taxation, ending years of uncertainty that weighed on study abroad consultants and their stakeholders. Most significantly, by formally recognising commission earned in foreign currency from international universities as an export service exempt from GST, India aligns itself with global standards, strengthening the sector's international standing.

This Supreme Court decision has garnered widespread appreciation throughout the international education landscape. With definitive guidance from the country's highest court, the industry emerges strengthened and better positioned to support thousands of students in realising their global academic aspirations.

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