TMI Blog2020 (3) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... ransportation service received by applicant from GTA to Applicant is the recipient - Transportation service received by applicant from service provider other than GTA and courier agency to Applicant is the recipient - Printing and supply of Law reports to Honourable High Court of Karnataka - Issue of NOC to public - Printing and supply of Bus tickets to BMTC. Supply to Various Departments of Government of Karnataka - whether the instant activity of printing and supply of text books printed material / Annual Reports / receipt books/ measurement books log books to other departments of same Government of Karnataka, who have not obtained separate registration under the GST Act, amounts to supply in terms of Section 7(1)(a) of the CGST Act 2017 or not? - HELD THAT:- The applicant claims exemption for the above said activity under entry No.8 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. This entry exempts only the services provided by the State Government to another State Government and hence the said entry is not relevant to the instant issue. Supply of Goods to Various Departments of Government of Karnataka - supply of printed material i.e. answer sheets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply to Public Recognised Book Stalls - printing supply of Text books/ Karnataka kaipidis/Karnataka gazettes Economic Survey of Government of Karnataka to Public recognised book stalls - HELD THAT:- All the items in the instant issue, i.e. Text books/ Karnataka kaipidis/Karnataka gazettes Economic Survey of Government of Karnataka, are nothing but printed books and merits classification under Chapter Heading 4901. Entry No.119 of Notification 02/2017-Central Tax (Rate) dated 28.06.2017 exempts the printed books i.e. goods falling under heading 4901. The impugned items are squarely covered under the said entry and hence are exempted. Supply of waste paper etc. - supply of waste paper, old sweepings, old obsolete forms and books, unusable articles as waste - HELD THAT:- In the instant case it could be inferred from the question that the applicant seeks advance ruling with regard to rate of GST applicable on the sale/ supply of waste paper. Waste scrap paper is classified under heading 4707 and attract 5% GST. Supply / sale of old machinery as scrap - supply of old machinery as scrap - HELD THAT:- In the instant case, the old printing machinery of ferrous material i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy, such transportation service is exempted from payment of GST as per entry no. 18 of the notification 12/2017 Central Tax (Rate) dated 28/06/2017. Whether they can deduct TDS on the transportation charges paid? - HELD THAT:- The applicant has to pay GST, under RCM, in the first situation and not required pay in the second situation. Therefore in either of the situation the applicant not paying the tax (GST) to the provider of the service and hence the question of deduction of TDS on the transportation charges paid does not arise. Printing Supply of Indian Law Reports to the Hon ble High Court of Karnataka - HELD THAT:- In the instant case the applicant being a Government press, established by the Government of Karnataka, under the control and supervision of Primary Secondary Education Secretariat and hence becomes part of Government of Karnataka. Applicant printing supply the Indian Law Reports to the Hon ble High Court of Karnataka, Bengaluru; content is provided by Hon ble High Court of Karnataka; physical inputs including paper belong to the applicant. Therefore, in the instant activity, the principal supply is that of supply of printing service and transaction b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 5,000/- each under the CGST Act and the KGST Act. 2. The applicant, (The Govt. Press) is an organization, established by Govt. of Karnataka under the control and supervision of the Primary and Secondary Education Secretariat to cater to the Printing and Stationery requirements of the requirements of the State Government offices namely Governor s Office, Legislature, Government Secretariat, High Court, and Other Government Departments. 3. The printing and stationery requirements of Government owned bodies are also taken care of by the Applicant on chargeable basis. Applicant also engaged in selling of the Government Publications to General Public through a network of Book Depots. The Applicant has also extended its technical assistance to various other Departments whose printing works, are being executed by the private printers. Besides this they also undertake the Printing works and supply of Stationery to Government of India Departments namely Chief Election Commissioner Office, Census Department etc., on chargeable basis. 4. The Applicant also executes the printing and sale text books as per the indents placed by the Karnataka Text Book Society. The sale of text boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs and publications supplied to Karnataka Legislative Assembly and Legislative Council of Government of Karnataka. 5. Annual Reports, Annual Administrative Reports Performance Budget Reports to Government Government undertakings We are charging paying tax @12% on the supply of Annual Reports to the Government organization and also supplies as Printed material to Autonomous bodies like BRTS Company, Hubli-Dharwad Karnataka Electricity Regulatory Commission, Chamundeshwari Electricity Supply Company, Power Company of Karnataka Limited, BESCOM / HESCOM / MESCOM /KPTCL, Udupi / Bellary Nagarabhivrudi Pradhikara, Higher Education Council. These items are charged and hence paying GST @ 12%. 6. Supply of IAS, KAS Civil lists We are supplying to DPAR of the Government of Karnataka, hence, we are claiming exemption as we are not charging for the supplies Made. 7. Supply of RTO challan and security forms of Transport Department. We are claiming exemption as we are riot charging for the supplies made. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g returns. On the supplies made to High Court, Raja Bhavans, and Secretariat Departments as we are not raising an invoice hence we are not charging for these supplies also claiming exemption. 15. Main Answer Booklets, Additional Answer Sheets Practical Answer Sheets. These goods are supplied to PU Board against their orders. On these supplies we are calculating the cost incurred on the booklets and collecting CGST SGST at 12%. 16. Sale of waste paper, old sweepings, old obsolete forms books unusable articles as waste and sale of plates old machinery These goods are sold through public auction as scrap and tax @ 5% is collected from the successful bidders and paid to the Department. 17. Transportation Charges Transportation of text books other printed forms/PUC answer booklets are supplied to various Departments as per the requirements.. These goods are supplied by us and we are Paying Transportation Charges along with the GST @5%. 18. Calendars to Specific Departments as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... collected on the supplies made to Karnataka Kolageri Abhivrnddi mandall, Karnataka State Aids Prevention Society, Karnataka Vasathi Shikshana Samsthe, Karnataka Sarvajanika Arogya Samsthe. 6. In view of the above, the applicant sought for advance ruling in respect of the following questions along with their Interpretation of Law to the said questions. Sl.No. Nature of supply Recipient Content provider Question interpretation of Law 1. Printing Supply of State Budget Documents. Printing of Text books to Government departments, Training manuals, other books, calendars, Journals, Flags posters, Karnataka Examination Authority Information Book, other Forms, Award certificates, Measurement Book, Employment Cards, Compendium, manuals, Reports (RTI, Annual Performance Compendium) Audit accounts, Annual Performance, Compendium, Receipt Books, Challans, Paper Testing Reports, Legislative Assembly Council Debates, Lists, Bills Brouchers, Various Types of Registers Forms, Karnataka Civil Service Rules. Government Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n other Government Receipient 1) The applicant is engaged in printing of Annual Reports to Government Departments, Autonomous undertakings and Zilla Panchayats. The content is provided by the recelpients. When such annual reports are sold to Government Departments is it an exempted service under SL.No.8 of notification 12/2017. Pl clarify. 2) If such annual reports are sold to undertakings and autonomous Corporations bodies, can we claim such sales as exempted sales under entry No.8 of notification No.12/2017. 3) The supply of annual reports to Zilla Panchayaths by the applicant is considered as services provided by one state Government Departments to another state Government Departments Falling under SL.No.8 of the notification No.12/2017. P1 clarify. 4) If these are considered as goods, under which entry these goods are taxable and at what is the rate of tax of these goods under GST. 4. Answer booklets, Visiting cards, Letter heads, Forms, Covers, File wrappers, invitation cards, Scribbling pads, Rubber stamps PU Board Various Government Department, CM office other Ministers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y whether this transaction is liable for tax under which entry? 8. Transportation charges paid Private person We are paying tax @5% on the transportation paid to the private party. 1) Are we liable to pay tax on the transportation charges paid to the service provider or 2) Can we deduct the tax element on the transportation paid as TDS and deposit at the time of filing returns. 9. Economic Survey Government of Karnataka Government Departments Receipient The Finance Department designated this work to us. We prepare the Economic Survey books as per the requirements of the Finance Department. The contents of the material is provided by the Government. Hence, this product is categorised as Service of printed materials. 1) Are we eligible to claim exemption vide Entry 8 of the Notification No.12/2017 dated 28th June 2017. Pl clarify. 2) If these printed materials are sold to the public directly by the Applicant, whether, the same is exempted or taxable under the GST Act. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks KTBs Receipient The contents of the text book is provided by the Government. Since the text books are supplied to Karnataka Text Books suppliers to sell them on behalf of the Government, we are charging GST @ 12%. As per entry No.8 of the notification No. 12/2017 dated 28/06/2017, the printing 8s supply of text books by one Government Department to another Government Departments is exempted under the CGST Act and KGST Acts. 1) Hence, it requested to clarify whether this activity is exempt under the CGST KGST Acts or not. 2) The text books are supplied to Recognised book stalls to sell them to the public on behalf of the Government whether it is treated as taxable or / exempted goods or services. If it is goods, can we claim exemption under Sl. No. 119 of the Notification No.2/2017? 3) If these services are taxable services, what is the rate of tax? Pl. clarify. 15. Bus Tickets Bangalore Metro Transport Corporation Receipient The Logo and the content of bus tickets is provided by the receipient. Since the contents are negligible com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant seeks advance ruling in respect of the questions mention at para 6 supra. It could be seen that the applicant s activities are predominantly concerned with printing. In this regard we draw attention to the Circular No.11/11/2017-GST dated 20.10.2017, wherein clarification on taxability of printing contracts has been issued. 8.4 Para 2 of the circular clarifies that supply of books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with logo, design, name, address or other contents supplied by the recipient of such printed goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. 8.5 The principal supply, in terms of Section 2(90) of CGST Act 2017, is supply of goods or services which constitutes the predominant element of composite supply and to which any other supply forming part of that composite supply. 8.6 Para 4 of the circular specifies that in the case of printing of books, pamphlets, brochures, annual reports, and the like, the supply of printing [of the content supplied by the recipient of sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Circular No. 11/11/2017-GST dated 20.10. 2017? 2. If the text books are supplied to public or recognised book stalls, whether it is treated as taxable /exempted goods or services. If it is goods, can we claim exemption under Sl. No.119 of the Notification No. 2/2017? 3. If these services are taxable services, what is the rate of tax? 8.10 Issue No.2 This issue is related to printing of Karnataka Kaipidi / Karnataka Gazzettes, of the contents provided by the recipient. This transaction is between the applicants (one Government Department) to another Government Department. The applicant raised the following 3 question in this regard. 4. Whether the service of printing supply of Karnataka Kaipidi / Karnataka Gazettes, provided by the applicant amounts to be services provided by one Government Department to another? If so, whether the said supply is exempted as per entry No. 8 of the notification No. 12/2017-Central Tax (Rate) dated 28/06/2017? 5. Whether the supply of said Karnataka Kaipidis to public or recognised bookstalls be treated as supply of printed books and qualifies for exemption under Sl.No.119 of Notification No.2/2017-Central Tax (Rate) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax (GST) of 5% is correct or not, on sale of waste paper? 8.14 Issue No.6: This issue is related to sale of old machinery as scrap. The applicant further states that the old machinery, if sold in the same form, is taxable @ 18% GST, in terms of Sl.No.335 of Schedule III of CGST Act 2017. The applicant raises the following question, with regard to sale of old machinery as scrap. 14. What is the rate of GST applicable, if old machinery is sold as scrap what is the relevant notification number and entry number therein? 8.15 Issue No.7: This issue is related to stationery articles, purchased by the applicant from the registered dealers and supplied as it is to the Government departments against the orders, at no profit or no Loss. The applicant claims that such transactions are exempted as the applicant is acting as a pure Agent. Thus the applicant raised the following question in this regard. 15. Whether the aforesaid transaction / activity qualifies to be a Pure Agent transaction and eligible for exemption? If not, what is the rate of tax relevant entry Notification under which this transaction is liable for tax? 8.16 Issue No.8: This issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, Panchayat Raj Engineering Division, Grameena Drinking Water and Nyrmalya, NIMHNS, Shishu Abhivrudhi Yojane, Karnataka Maha Risha Valamiki Parishishta Pangadagala Abhivrudhi Niyamitha, for which the content is provided by the Government Departments. The applicant raises the following question in this regard. 21. Whether the supply of printed materials (measurement books) qualifies to be supply of service is exempted vide entry No.8 of the Notification No.12/2017-Central Tax (Rate) dated 28/06/2017, when the same is supplied by one Government Department to another Government Department? 8.20 Issue No. 12 : This issue is related to printing supply of Indian Law Reports to the Hon ble High Court of Karnataka. The contents of the Law reports are provided by the Hon ble High court of Karnataka. The applicant supplies the said printed material (Law Reports), at free of cost. In this regard, the applicant raises the following question. 22. Whether the aforesaid supply qualifies to be supply of service is entitled for exemption under entry No.8 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017? 8.21 Issue No. 13 : This issue is related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing 2 questions. 29. Whether the aforesaid supply qualifies to be supply of taxable goods or services? 30. What is the rate of tax under which entry these goods/services are taxable? 8.24 Issue No. 16 : This issue is related to printing supply of Log Books to Karnataka PWD, Karnataka Kolageri Abhivruddi mandali, Karnataka State Aids Prevention Society, Karnataka Vasathi Shikshana Samsthe, Karnataka Sarvajanika Arogya Samsthe. The Log books are supplied to various Government Departments and the contents are provided by Government Departments. The applicant contends that since the contents are negligible compared to the materials used, the activity amounts to supply of goods and also states that, at present, they are claiming exemption on the supply of these goods to KPWD. However, they are collecting tax @ 12% on the sale made to Autonomous bodies. In this regard, the applicant raises the following 3 questions. 31. Whether these are taxable or exempted goods/ services? 32. If these are taxable under which entry these are taxable? 33. Since these materials are supplied by one Government Department to another department or Autonomous bodies cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... This category covers the questions bearing numbers 1,4,7,9,18,20,21,26,31,32 33 as mentioned above. In all these questions the applicant is engaged in printing of text books printed material / Annual Reports / receipt books/ measurement books log books; content is provided by any of the Department of Government of Karnataka; physical inputs including paper belong to the applicant. The printing of books / annual reports and like, where content is supplied by the persons who owns the usage rights to the intangible inputs, while the physical inputs including paper used for printing belong to the printer would constitute a composite supply, where the principal supply is that of supply of printing service and merits classification under SAC 9989, in terms of Para 4 of the Circular No. 11/11/2017-GST dated 20.10. 2017. In the instant case the applicant being Government Press, established by the Government of Karnataka, under the control and supervision of Primary Secondary Education Secretariat and since does not have an independent existence, what so ever, from the Government of Karnataka becomes part of Government of Karnataka. Further the provider of the content is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Departments of same Government of Karnataka who have obtained separate registration under the GST Act, then the said activity amounts to supply in terms of Section 7(1)(a) of the CGST Act 2017 and exigible to tax. The applicant claims exemption for the above said activity under entry No.8 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. This entry exempts only the services provided by the State Government to another State Government and hence the said entry is not relevant to the instant issue. b. Supply of Goods to Various Departments of Government of Karnataka: This category covers the question number 11. In all these questions the applicant is engaged in supply of printed material i.e. answer sheets/visiting cards/ letter heads/ forms/covers/file wrappers/invitation cards/ scribbling pads / rubber stamps; content is provided by any of the Department of Government of Karnataka; physical inputs including paper belong to the applicant. Para 5 of the circular specifies that in the case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc., falling under Chapter 48 or 49, printed with design, logo etc., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts including paper belong to the applicant. The printing of books / annual reports and like, where content is supplied by the persons who owns the usage rights to the intangible inputs, while the physical inputs including paper used for printing belong to the printer would constitute a composite supply, where the principal supply is that of supply of printing service and merits classification under SAC 9989, in terms of Para 4 of the Circular No. 11/ 11/ 2017-GST dated 20.10. 2017. The applicant states that they are charging @12% on the supply of Annual Reports Receipt Books to Autonomous bodies, at present. However, they contend that the impugned supply is entitled for exemption under entry No.8 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, which exempts only the supply of services provided by the State Government to another State Government etc., but not to the autonomous bodies. Thus the said entry is not relevant to the instant issue the exemption is not available to the applicant and hence the impugned supply is exigible to tax. The impugned supply is that of services, classified under SAC 9989 and attracts 12% GST, in terms of Sl.No.27 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , unusable articles as waste. The applicant has not provided any relevant information with regard to unusable articles as to whether they are of paper only or not. Hence it is considered that the unusable articles old sweepings are of paper only as the question raised in this regard is Whether the applicant s understanding of rate of tax of 5% is correct or not, on sale of waste paper? Recovered (waste and scrap) paper or paper board is classified under Tariff Heading 4707 of Customs Tariff Act 1975. Entry No.198 B of Schedule I to Notification No.1 /2017-Central Tax (Rate) dated 28.06.2017 as amended by the notification 34/2017 Central Tax (Rate) Dated 13/10/2017 covers the goods Recovered (waste and scrap) paper or paper board , falling under heading 4707 and in terms of the said entry the applicable rate of GST is 5% (CGST 2.5% KGST 2.5%) In the instant case it could be inferred from the question that the applicant seeks advance ruling with regard to rate of GST applicable on the sale/ supply of waste paper. Waste scrap paper is classified under heading 4707 and attract 5% GST, as discussed above. g. Supply / sale of old machinery as scrap This categ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agent he must be a supplier of goods or services or both and then he must procure certain goods or services for the said supply, for which, he incurs expenditure, under the agreement, and collects the said expenditure in addition to the value of his supply, from the recipient. The amounts so collected are called reimbursable expenses and the person is called pure agent. In the instant case the applicant, being the part of Government of Karnataka, procures the required stationery and distributes the same to various departments, but does not procure any other services or goods or both for the supply / distribution of the stationery items and hence the applicant does not qualify to be a pure agent. Thus the impugned activity of supply of stationary items to other Departments of same Government of Karnataka who have not obtained separate registration under the GST Act does not qualify as supply in terms of Section 7(1) (a) of the CGST Act 2017, as explained at para 10 (a) supra. However, if supply of stationary items is done to the other Departments of Government of Karnataka who have obtained separate registration under the GST Act, then the transaction qualify as supply in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation. Therefore in either of the situation the applicant not paying the tax (GST) to the provider of the service and hence the question of deduction of TDS on the transportation charges paid does not arise. j. Printing Supply of Indian Law Reports to the Hon ble High Court of Karnataka: This category covers the question number 22, which deals with printing supply of Indian Law Reports to the Hon ble High Court of Karnataka, Bengaluru at free of cost; content is provided by Hon ble High Court of Karnataka; physical inputs including paper belong to the applicant. The printing of books / annual reports and like, where content is supplied by the persons who owns the usage rights to the intangible inputs, while the physical inputs including paper used for printing belong to the printer would constitute a composite supply, where the principal supply is that of supply of printing service and merits classification under SAC 9989, in terms of Para 4 of the Circular No. 11/11/2017-GST dated 20.10. 2017. In the instant case the applicant being a Government press, established by the Government of Karnataka, under the control and supervision of Primary Secondary Educat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw relating to co-operative societies; (j) a local authority; (k) Central Government or a State Government; (l) society as defined under the Societies Registration Act, 1860; (m) trust; and (n) every artificial juridical person, not falling within any of the above; From the above, the printing supply of Indian Law Reports to the Hon ble High Court of Karnataka, Bengalure by the applicant is exempted om GST in terms of entry no 6 of the notification 12/2017 Central Tax (Rate) dated 28/06/2017. k. Issuance of No Objection Certificate (NOC) to private persons, for change of name This category covers the questions bearing number 23, 24 25, which deals with issuance of No Objection Certificate (NOC) to private persons, for change of name. Private individual who intended to change their name approach the applicant for publishing their present and proposed name in the official Gazette. Since the private individual name is not published in the official Gazette, applicant issues No Objection Certificate to the private individual which enable them to publish their name in the newspapers. Presently applicant is charging ₹ 100/-, for each NOC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant have been given tabulated which are as under: Sl.No. Items involved in the supply Supplied to Supply amounts to Whether supply is Taxable/Exempted Rate of Tax applicable Relevant Notifn. Entry No. 1. Printing and supply of Text books and Printed Materials, Karnataka Kaipidi, Annual Reports, Receipt Books, Measurement Books and Log books Government Departments not registered under GST Act. Service Exempted as this transaction does not qualify as supply under section 7(1)(a) of the CGST/KGST Act 2017 Not applicable Not applicable Government Departments registered under GST Act. Taxable 6% CGST and 6% SGST Classified under SAC 9989 covered under entry No.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 2. Printing supply of Answer booklets, Visiting cards, Letter heads, Forms, Covers, File wrappers, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Classified under HSN 4707 covered under entry No.198 B of Notification 01/2017-Central Tax (Rate) dated 28.06.2017 as amended by the notification 34/2017 Central Tax (Rate) Dated 13/10/2017 7. Supply of old Machinery as Scarp Public Goods Taxable 9% CGST and 9% SGST Classified under HSN 7204 covered under entry No. 199 of Schedule III of Notification 01/2017-Central Tax (Rate) dated 28.06.2017 8. Supply of stationary Articles Government Departments not registered under GST Act. Goods Exempted as this transaction does not qualify as supply under section 7(1)(a) of the CGST/KGST Act 2017 Not applicable Not applicable Government Departments registered under GST Act. Goods Taxable As applicable to those goods supplied As applicable to those goods supplied 9. Transportation service received by applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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