TMI Blog2018 (5) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... ed goods - The Sections 22, 23 and 24 have to be read together and from the combined reading of the same it is held that the applicant is required to take registration if it has GST liability under reverse charge mechanism. It is also observed that there is no threshold exemption for payment of GST under Reverse charge mechanism. Ruling:- The products supplied by the applicant ‘Sulekh Sarita Part-A’, ‘Sulekh Sarita Part-B’ and ‘Sulekh Sarita Part 1-5’ are correctly classified under HSN 4820 and not under HSN 4901 or 4903. Hence, they are not covered under entry no. 119 or 121 of Notification No. 2/2017 – Central Tax (Rate) dated 28.06.2017 and parallel notifications of SGST and IGST - The applicant is liable for registration if it has GST liability under reverse charge mechanism irrespective of the situation that it has no liability to pay GST as supplier of goods and/ or services. - Advance Ruling No. 05/DAAR/2018 - - - Dated:- 6-4-2018 - Pankaj Jain Member (Centre) and Vinay Kumar Member (State) Present for the Applicant: Shri Vineet Bhatia, Advocate Present for the Revenue (Centre): Shri Neeraj Aneja, Superintendent, Division Janakpuri, GST West, New Delhi P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers with lines printed on them. The printing of lines on the plain paper is merely for enabling the students to write in a straight manner. Merely printing of lines and binding these ruled sheets does no per-se qualify these note books or exercise books as printed books . 8. That on the other hand, the Sulekh Sarita Part-A (सुलेख सरिता भाग - अ), Sulekh Sarita Part-B (सुलेख सरिता भाग - ब) and Sulekh Sarita Part 1-5 (सुलेख सरिता भाग 1 से 5) have been written by Hindi experienced teachers and experts with the following objectives: a. To teach the child exact formation of Hindi letters ( स्वर एवं वयंजन). b. The main problem faced by the children in Hindi subject is the error of MATRAS ( मात्राओं की गलतिया). This book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8;च्चों को वो संस्कार प्रदान करना है जो जीवन मे उनके काम आएं और वे एक अच्छा इंसान बनने मे उनकी मदद करे। have been provided in the book with the objective to inculcate ethos and values in the minds of the growing children. 11. Although, the good hand writing not only helps a child to get good marks in examination, it also depicts the personality of a person. However, the book sulekh sarita (सुलेख सरिता) is not just a writing book. The above mentioned objectives which has been kept in mind by the author while writing the book and this makes it a base book for the children in Hindi. 12. All printed books have an author, whereas exercise books or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntially of textual matter of any kind, and printed in any language or characters include textbooks (including educational workbooks sometimes called writing books), with or without narrative texts have been classified to be printed books falling under HSN 4901. 18. It is a settled law that the principle of ejusdem generis can be applied while interpreting entries in a taxing statute and the words or expressions in a entry derives its meaning, colour and characteristics from the preceding and succeeding words. A particular section of the statute shall not be divorced from the rest of the Act. The Ejusdem Generis rule applies to resolve the problem of giving meaning to groups of words where one of the words is ambiguous or inherently unclear. Even otherwise when the principle of ejusdem generis is applied to these HSN codes then the meaning of exercise books and printed books becomes clear. It can be noticed that the word exercise books (In HSN 4820) is preceded by the word registers, account books, note books, order books, receipt books, letter pads, diaries and similar other articles and succeeded by the words binders, folders, file covers, inter leaved carbon sets, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (v) Non-resident taxable persons making taxable supply; (vi) Persons who are required to deduct tax under Section 51, whether or not separately registered under this Act. (viii) Input Service Distributor, whether or not separately registered under this Act; (ix) Persons who supply goods or services or both, other than supplies specified under sub-section (5) of Section 9 through such electronic commerce operator who is required to collect tax at source under Section 52; (x) Every electronic commerce operator; (xi) Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; (xii) Such other person or class of persons as may be notified by the Government on the recommendations of the Council. 22. The issue for decision is that in case person engaged exclusively in supply of goods that are not liable to tax or wholly exempt from tax (say for example printed books or fresh vegetables or fruits) but is also availing the services of Goods Transport Agency or an Advocate and thus liable to pay tax under reverse charge then whether such a person is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued a clarification on classification of Printed Workbooks, Exercise Books etc. under erstwhile CETA, 1985. As per para 2 of the said circular, the books Sulekh Sarita is an Exercise Book and classifiable under HSN 4820 of the GST Tariff. Thus, as per Entry no. 123 of Schedule II of Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017, GST rate of 6% is applicable on the books Sulekh Sarita . 30. With respect to Question No. 2: As per Section 23 (1) of the Central Goods and Services Tax Act, 2017, the persons who are engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax or an agriculturist, to the extent of supply of produce out of cultivation of land are not liable to register under GST. 31. CBEC Circular No. 1057/6/2017 CX dated 07.07.2017 Sub: Classification of Printed Workbooks, Exercise books etc. under erstwhile CETA 1985: (i) Representations have been received from the members of the trade requesting clarification regarding classification of printed workbooks, exercise books, children s drawing book etc. The issue raised in these representations is whether the afo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Chapter note 12 to Chapter 48 of erstwhile CETA, 1985. (iv) Similarly, HSN Chapter note (6) to Chapter 49 read with HSN explanatory note under heading 49.03 covers children s workbooks consisting essentially of pictures with complementary texts, for writing or other exercises, and children s drawing or colouring books, provided the pictures form the principal interest and are not subsidiary to the text. Thus, children s drawing books which are in harmony with said HSN Chapter note (6) and HSN Explanatory note to heading 4903 would fall under Chapter 49. The relevant entries of Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017 are as under: 32. Schedule 1 (2.5 % duty): S. No. Chapter/ Heading/ Sub-Heading/ Tariff Item Description of Goods 201. 4901 Brochures, leaflets and similar printed matter, whether or not in single sheets. 33. Schedule 2 (6% duty): S. No. Chapter/ Heading/ Sub-Heading/ Tariff Item Description of Goods 123. 4820 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted books, brochures, leaflets and similar printed matter, whether or not in single sheets. (A) Books and Booklets consisting essentially of textual matter of any kind, and printed in any language or characters, including Braille or shorthand. They include literary works of all kinds, text-books (including educational workbooks sometimes called writing books), with or without narrative texts, which contain questions or exercises (usually with spaces for completion in manuscript); technical publications; books for reference such as dictionaries, encyclopaedias and directories (e.g., telephone directories, including yellow pages ): catalogues for museums and public libraries (but not trade catalogues); liturgical books such as prayer books and hymn books (other than music hymn books of heading 49.04); children s books (other than children s picture, drawing or colouring books of heading 49.03). Such books may be bound (in paper or with soft or stiff covers) in one or more volumes, or may be in the form of printed sheets comprising the whole or a part of the complete work and designed for binding. Heading 4901 also covers: Bound picture books (other than children s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing classification as exercise books in Chapter 48 (4820) of Central Excise Tariff Act. The Hon ble High Court of Delhi vide order dated 31.08.2016 had directed CBEC to examine the matter and pass appropriate order. Accordingly, CBEC has clarified the issue vide Circular No. 1057/6/2017 CX dated 07.07.2017. 40. The goods coverd under the relevant headings have been distinguished by Circular No. 1057/6/2017 CX dated 07.07.2017. The guiding principle for classification has also been laid down. 41. From the above, it is observed that the relevant headings 49.01, 49.03 and 48.20 cover generally the following goods: (i) Heading 49.01: This heading generally covers textual reading material/books including text-books, catalogues, prayer books etc. The heading 49.01 specifically covers educational workbooks or writing books. (ii) Heading 49.03: This heading generally covers children s picture, drawing or colouring books wherein pictures form the principal interest in the books. (iii) Heading 48.20: This heading generally covers stationery books. However, exercise books are specifically covered in this heading. Such exercise books may contain simple sheets with print ..... X X X X Extracts X X X X X X X X Extracts X X X X
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