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2020 (1) TMI 1044 - AAR - GSTClassification of supply - classification of goods or classification of services? - activity of printing of question papers on behalf of educational institutions - benefit of Sr. No. 27 of N/N. 11/2017-C.T. (R), dated 28-6-2017 as amended - benefit of S. No. 66 of N/N. 12/2017-C.T. (R), dated 28-6-2017 - question paper, whether exempt goods or not - Circular No. 11/11/2017-GST, dated 20-10-2017. Whether activity of printing of question papers on behalf of educational institutions can be classified as activity of supply of goods or supply of services? - HELD THAT:- The content of the printed matter is specific to the customer, and, neither is the matter pre-printed, nor has the Applicant any ownership to the content at any point of time, and, therefore, cannot transfer title of the above printed matters. Hence, the Question Papers are not the property of the Applicant - Furthermore, the Question Papers supplied by the Applicant to their customers are not marketable commodities in the open market and as goods they have no legitimate value to persons other than the specific customer who provides the input content. The Applicant, therefore, cannot be said to be supplying Question Papers as "goods" under the GST Act, but to be supplying the service of printing. If it is supply of services, referring to Sr. No. 27 of Notification No. 11/2017-C.T. (R), dated 28-6-2017 as amended by Notification No. 31/2017-C.T. (R), dated 13-10-2017, then benefit of S. No. 66 of Notification No. 12/2017-C.T. (R), dated 28-6-2017 is allowable as amended by Notification No. 2/2017-C.T. (R), dated 25-1-2018? - HELD THAT:- As defined in clause (y) of Para 2 of the said Notification No. 12/2017-Central Tax (Rate) 'Educational Institutions' means an institute providing services by way of (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of curriculum for obtaining a qualification recognized by any law for time being in force; (iii) education as a part of an approved vocational education course. The benefit (exemption from payment of GST) of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) is admissible only in case where service is provided to an educational institution - The services of printing of question paper, supplied by the applicant to other than 'educational institutions' will be covered by Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), as amended, and will attract Goods and Services Tax @ 12%. If it is supply of goods, then question paper should be treated as exempted goods at S. No. 119 of exempted list at NIL rate of tax under chapter heading/ sub-heading of 4901 10 10 of "printed books including Braille books"? - HELD THAT:- The applicant raised the issue whether supply of question papers is supply of goods, which is not applicable as we have already clarified that the activity of printing of question papers is supply of services. Hence, there is no need to consider the third question. It should be covered by Schedule I at S. No. 201 liable to tax at 2.5% CGST under "brochures, leaflets and similar printed matter, whether or not is single sheets"? - HELD THAT:- The question raised by the applicant is applicable only when third question is affirmative i.e., activity of printing of question papers on behalf of educational institutions is considered as supply of goods, as the answer to the question is negative, hence fourth question is not applicable.
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