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2018 (10) TMI 201 - AAR - GSTClassification of Supply - Supply of goods or services? - Levy of GST - activity of printing of question papers for Secondary and Higher Secondary Education Boards of various states and also at the national level and for various education institutes - N/N. 2/2017-Central Tax (Rate) dated 28.06.2017. 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? If it is supply of services, referring to Sr. No. 27 of Notification 11/2017-CTR dtd : 28.06.2017 as amended by Notification 31/2017-CTR dtd.: 13.10.2017, then benefit of Sr. No. 66 of Notification 12/2017-CTR dtd.. 28.06.2017 is allowable, as amended by Notification No. 2/2017-CTR of 25.01.2018? If it is supply of goods, then question paper printing should be treated as exempted goods at Sr. No. 1 19 of exempted list liable at Nil rate of tax under Chapter heading / subheading of 4901 10 10 of “Printed books including Braille books? or It should be covered by Schedule I at Sr. No. 201 liable to tax at 2.5% under “Brochures, leaflets and similar printed matter, whether or not in single sheets”? Supply of goods or services? - Held that:- The Government of India, Ministry of Finance, Department of Revenue, Tax Research Unit, vide Circular No. 11/11/2017-GST dated 20, 10.2017, has issued clarification on taxability of printing contracts - The manuscript material for printing the Question Papers relating to the examinations is supplied to the applicant by the Education Boards / Educational Institutes. The scope of work of the applicant relates to compose, typeset, print, pack, transport, unload and supply sealed Question Papers to the Education Board / Educational Institutes. As the usage rights of the manuscript material of Question Papers (intangible inputs) are owned by the Education Boards / Educational Institutes and the physical inputs used for printing belong to the applicant, supply of printing is the principal supply in this case and the same would constitute supply of service falling under heading 9989 of the scheme of classification of services. Applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, or Sr. No. 27 of Notification No. 11/2017-CentraI Tax (Rate) dated 28.06.2017, as amended, (and corresponding Notifications issued under the Gujarat Goods and Services Tax Act, 2017) to the supply of service - Held that:- The expression ‘relating to’ used in sub-item (iv) of item (b) of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) widens the scope of the said entry and printing of question papers would be covered by the phrase ‘services relating to admission to, or conduct of examination by, such institution’ - the supply in this case would constitute supply of service falling under heading 9989 of the scheme of classification of services, whereas column 2 of Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate) refers to Heading 9992. However, Explanation (ii) at Para 3 of the Notification No. 12/2017-Central Tax (Rate), as amended, clarifies that ‘Chapter, Section, Heading, Group, or Service Code mentioned in Column (2) of the Table are only indicative’. Therefore, merely on the ground of classification of the service of the applicant under heading 9989 would not preclude it from being covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), if it is otherwise covered under the said entry - Therefore, services provided by the applicant to educational institutions by way of printing of question papers for conduct of examination by such institutions would be covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), as amended. The service 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% (CGST 6% + SGST or IGST 12%). Ruling:- The activity of printing of question papers by M/s. Edutest Solutions Private Limited is activity of supply of service classifiable under heading 9989 of the scheme of classification of services. The service provided by M/s. Edutest Solutions Private Limited to educational institutions by way of printing of question papers for conduct of examination by such institutions would be covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), as amended and Notification No. 12/2012-State Tax (Rate), as amended. The service provided by M/s. Edutest Solutions Private Limited to service recipients other than educational institutions by way of printing of question papers would be covered by Sr.No. 27(i) of Notification No: 11/20.17-Central Tax (Rate), as-amended, and Notification No. 11/2017-State Tax (Rate), as amended. As the activity of printing of question papers by M/s. Edutest Solutions Private Limited is held to be activity of supply of service, the question of appropriate classification as ‘goods’ and applicable rate on such ‘goods’ does not arise.
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