9911796707
TMI Blog2020 (3) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 books are being executed on chargeable basis while the free text books are printed and supplied at free of cost. Steps are being taken for the printing & sale of Pre-University Text Books of smaller quantity through the Book Depots. This department is hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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. Supply of different kinds of Modules pertaining to Department of State Educational Research and Training. These Printed materials are supplied to one of the Government Departments and tax is charged at the rate of 12% on the supplies made. 9. Handbooks related to Election work It is supplied to the Election Commission in Karnataka. We are charging and paying tax at the rate of 12% on the supplies made to the Election Commission. 10. Supply of Various Forms/Registers to ESIS Medical Services, Kidwai Cancer Institute, General Hospital, Community Health Centre as per their requirements. These goods are supplied to various Government organizations. We are charging and paying tax at the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irements Supplied to Library, RDPR and Legal Service Authority-we are charging and paying tax on the supplies made at 12%. High Courts -We are not charging for the supplies made hence we are claiming exemption 19. Economic Survey of Government of Karnataka Supplies are made on non-chargeable bases A small portion is sold through Book Depots to the General Public and tax is charged at 12%. 20. Receipt Books, Measurement Books, File Wrappers, Log Books, Registers, Bill Forms, etc. We are charging tax @ 12% GST on these supplies made to Autonomous Bodies sold through our Book Depots. We are claiming exemption on these materials supplied to Government Departments. We are also selling the same to the public and collecting tax @ 12% GST 21. Receipt Book (KFC-1) Printed and supplied to Chamundeshwari Electricity Supply Company, Universities, Hospitals, Davanagere Smart City, Electronic City Industrial Township Authority, Legal Services Authority, Technical Service Centre etc. and collecting tax at 12% under GST. 22. Measurement Book Printed and supplied to Karnataka Neravari Nigama, PWD, Zilla Parishad, Panchayat Raj Engineering Division, Grameena Drinking Water and Nyrmaly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17, the printing & supply of text books by one Government Department to another Government Department is exempted under the CGST Act and KGST Acts. Hence, it requested to clarify whether this activity is exempt under the CGST & KGST Acts or not. 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 SI. No.119 of the Notification No.2/2017 3) If these services are taxable services, what is the rate of tax? 2. Karnataka Kaipidi, Karnataka Gazette Government Departments & Karnataka Gazetter Department Receipient 1) The applicant is engaged in printing of Karnataka Kaipidis/ Karnataka Gazzettes from the contents provided by the receipient to whom the supply is to be made. This service is provided by one Government Department to another Government Department. Hence, it is exempted as per entry No. 8 of the notification No. 12/2017 dated 28/06/2017. It may be clarified. 2) If the said Kaipidis are sold to public or recognised bookstalls whether it is treated as printed books falling under Sl.No.119 of Notification No.2/2017 and claim exemption on such sales. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under SL. No. 150 of the Notification 2/2017 dated 28/06/2017. PI clarify. 2) If they are taxable, pl clarify under which entry and notification the said goods would fall? 5. Sale of waste paper, old sweepings, old & obsolete forms & books unusable articles as waste and sale of old machinery Public The goods are sold through public auction The applicant being a Government organisation sells the paper waste as is where condition through the public auction is. Whether the understanding of the rate of tax is correct or not may please be clarified. 6. Sale of old machinery Public sold through public auction If the old machinery is sold as scrap, what is the rate of tax and the entry and notification may please be clarified 7. All stationery Articles Government Departments Purchased from Registered dealers & sold to Government Departments Since the stationery articles are purchased from the registered dealers and supplied as it is to the Government Departments against the orders at no profit or no Loss, such transactions are exempted as the applicant is acting like a pure Agent. Therefore, it is requested to clarify whether it is pure Agent transaction and eligible for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ree of cost. Whether we are eligible for exemption on the supply of these services vide entry No.8 of the Notification No.12/2017 dated 28/06/2017. Pl clarify 13. Karnataka Gazette NOC'S to Private Person's for Change of Name at Rs. 100/ - Since we are giving the NOC to private persons at a price of Rs. 100-00 we are not charging any GST at present. In this case the contents are provided by the receipient. PI clarify 1) whether these are goods / services exempted under the Act 2) If these are goods under what entry the goods are taxable and at which rate? 3) If these are services under what entry these services are taxable and at which rate? 14. Text Books 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 8.3 The applicant is a printing press under the Government of Karnataka, catering to the printing needs of various departments of Karnataka Government, Government of India, High Court of Karnataka and other autonomous bodies / corporations. The applicant 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised the following 3 questions with regard to printing of text books & printed material. 1. Whether the activity of printing & supply of text books & printed materials, provided by the applicant to various Departments of Government of Karnataka, is entitled to exemption under entry No.8 of the Notification No. No.12/2017 Central Tax (Rate) dated 28/06/2017, read with para 4 of 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 D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , old & obsolete forms & books, unusable articles as waste and sale of old machinery. The applicant being a Government organisation sells the paper waste in as is where condition through public auction. In this regard the applicant raised the following question. 13. Whether the applicant's understanding of rate of tax (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 followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of receipt books, to Government Departments & Autonomous bodies, is eligible for exemption under the GST Act or not? 8.19 Issue No. 11: This issue is related to printing & supply of measurement books to Karnataka Neravari Nigama, PWD, Zilla Parishad, 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 questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts are negligible compared to materials, the activity qualifies to be treated as goods and stats that they are collecting GST @ 12%, at present. In this regard, the applicant raises the following 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 thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following paras. a. Supply of Service to Various Departments of Government of Karnataka: 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 Ka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. However, If the activity of printing and supply is done to 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 unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded by autonomous bodies; 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. 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 1 ..... 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 category covers quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es 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 terms of Section 7(1)(a) of the CGST Act 2017 and liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aying 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 Education Secretariat and hence becomes part of Government of Karnataka. Applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety 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 Rs. 100/-, for each NOC and not paying GST on this amount. The applicant being the Department of Government of Karnataka, issues the No Objection Certificate to the private ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, invitation cards, Scribbling pads, Rubber stamps 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. Taxable 9% CGST and 9% SGST Classified under HSN 4817 and 4820 covered under entry No. 152 and 154 of Schedule III to Notification 01/2017-Central Tax (Rate) dated 28.06.2017 3. Printing and sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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