India’s Union Budget 2026–27 Finally Ends GST Confusion for Education Agents

Big news for India’s international education community — the Union Budget 2026–27 has finally brought long-awaited clarity on GST for education agent commissions!

For years, Indian agencies helping students study abroad had to charge 18% GST on their commission invoices to foreign universities.
The reason? The “place of supply” was considered to be India — even though the universities were based overseas and payments came in foreign currency.

That ends now.

What’s Changing

The Budget introduces a key reform under GST 2.0:

• Intermediary services (like student recruitment for overseas universities) will now be treated as exports when the recipient is outside India.
• The “place of supply” will be determined by the location of the recipient, not the agent.
• This means no 18% GST on commissions earned from foreign universities.

In simple terms:
Indian education agents = service exporters.

This reform takes effect from April 2026, according to professional advisories from EY and PwC.

 Why It Matters

This change isn’t just about tax — it’s about fairness and competitiveness.

• It removes unnecessary compliance hurdles for Indian agents.
• It reduces costs for overseas universities (especially in Australia, the UK, and Canada).
• And it aligns India’s education services sector with global trade norms.

For years, Indian agents were treated as intermediaries rather than exporters — despite bringing valuable foreign exchange into the country. With this reform, that anomaly is finally fixed.

The Long Road to Reform

This success didn’t happen overnight.

Back in 2018, an advance GST ruling against Global Reach Education Services Pvt Ltd created widespread concern in the sector. The ruling declared that commissions paid by foreign universities did not qualify as exports.

That decision became a reference point — and a rallying cry.

Soon after, AAERI (Association of Australian Education Representatives in India) took the lead. Supported by consultants from Deloitte and PwC, the association launched a sustained campaign to highlight that Indian agents:

• Work with clients outside India,
• Are paid in foreign exchange, and
• Therefore qualify as exporters of services.

Leaders like Rahul Gandhi, Ravi Lochan Singh, CEO of Global Reach, a leading Education Agent across South Asia,  Harinder Johar, Nishi Borra, and Balaji, engaged directly with the Ministry of Finance — and their persistence has now paid off.

The Legal Backdrop

Over the years, several agencies took their cases to court. Despite these wins, tax notices and audits continued across the country — until the government’s latest intervention finally brought uniform clarity.

What This Means for the Industry

For Indian Agents:

1. No 18% GST on commissions from foreign universities.
2. Simpler invoicing, fewer disputes, and improved cash flow.
3. A clear legal foundation to operate as service exporters.

For Overseas Universities:

1. No hidden tax costs or compliance confusion.
2. Transparent billing and smoother financial processes.
3. Stronger partnerships with trusted Indian recruitment agencies.

For the Sector:

1. Policy alignment with global practices.
2. A big boost for India’s education export competitiveness.
3. More collaborative, cost-effective student recruitment ecosystems.

What Happens Next

The new rules take effect from April 2026, giving agencies and universities time to prepare.

Between now and then:
Agents should update contracts and ensure proper export documentation (foreign exchange receipts, contracts, etc.)
Universities should prepare to receive non-GST invoices from their Indian partners.

Once implemented, this reform will make cross-border student recruitment simpler, cleaner, and more globally aligned.

A Collective Win

This is a victory for the entire international education ecosystem — made possible by years of advocacy, collaboration, and persistence.

Kudos to AAERI and industry leaders who stood firm on behalf of agents and students. And special recognition to Uniagents – powered by Global Reach for championing compliance and professionalism throughout this journey.

From April 2026, Indian education agents can finally operate on a level global playing field and that’s something worth celebrating.