TMI Blog2022 (12) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... tion or any document whatsoever related to transaction being undertaken or proposed to be undertaken is produced, it is not possible to comprehend the transaction. Hence. there is no other alternative. but to hold that the answer to the question cannot be given in the absence of proper details. Thus, none of the questions are answered. - GST-ARA-80/2020-21/B-110 - - - Dated:- 1-12-2022 - SHRI. RAMMOHAN RAO, AND SHRI. T. R. RAMNANI, MEMBER NO.GST-ARA-80/2020-21/B-110 Mumbai, dt. 01/12/2022 PROCEEDINGS (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act respectively] by M/s. MAKARAND VASANT KULKARNI, the applicant, seeking an advance ruling in respect of the following questions. (i) Whether activity of printing and supply of question papers for Universities, Educational Boards and Educational Institutes can be classified as supply of goods or supply of services? (ii) W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... versity or Board as the case may he. The scope of work relates to compose, typeset, print, pack transport. and supply of sealed question papers at the given addresses to the University. Board or Educational Institute. B. STATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW APPLICANT'S INTERPRETATION Statement containing the Applicant's interpretation of law and / or facts. 1. As per the understanding of the Applicant printing of examination or test paper is a composite supply where the printing of the contents provided by the University or Board or Educational Institute is the principal supply. 2. As per Sec 2(30) of the CGST Act. 2017 Composite Supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business. one of which is a principal supply . 3. As per Sec 2(90) of the CGST Act, 2017 Principal Supply means the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. 5. In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of under Chapter 48 or 49 of the Customs Tariff. 6. Difficulty if any, in the implementation of the circular should be brought to the notice of the Board. Hindi version would follow. 6. In view of the above, the Applicants have classified the supply of printed question papers under SAC 999295. 7. The Applicant refers to the Sr. No.66 of Notification No. 12/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n following decisions Hon. Supreme Court and High Court. Doypack Systems Pvt Ltd vs UOI- 1988(36) ELT 201 (SC) Coca Cola India Pvt Ltd. vs CCE, Pune III-2009 (242) ELT 168 (Bom HC) 10. The Applicant undertakes the activities of printing question papers only for the University. Board or Institutes fulfilling the above stated conditions. In view of the abovementioned legal position, the Applicant is under bona fide belief that printing and supply of question papers to University, Board and Educational Institutes is the service relating to conduct of examination and therefore the same is exempt from GST under Si. No.66 of Noti. No. 12/2017-Central Tax (Rate). 11. The Applicant now refer to Sl. No.27 of the Noti. No.12/2017-Central Tax (Rate). For the ready reference, the same is reproduced below. Sl.No. Chapter Heading Description of Service Rate (per cent) Conditions 27 9989 i) Services by way of printing of all goads falling under Chapter 48 or 49 [including newspapers, books (including Braille books), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. 03. CONTENTION - AS PER THE CONCERNED OFFICER: The submissions, as reproduced verbatim, could be seen thus- OFFICER SUBMISSION DATED 07.12.2021: COMMENTS ON THE ISSUE - The assessee has filed an application with Advance Ruling Authority, on the issues the questions raised in application are as follows: i. Classification of goods and/or services or both ii. Applicability of a notification issued under the provisions of the CGST Act, 2017 iii. Whether any particular thing done by the applicant with respect to any goods and/or services or both amount to or results in a supply of goods and/or services or both within the meaning of that term Questions on which Advance Ruling is required 1. Whether Activity of printing and supply of question papers for Universities, Educational Boards and Educational Institutes can be classified as supply of services? 2. Whether the benefit Under Sr.No.66 of the Notification No.12/2017-Central Tax (Rate) as amende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which any other supply forming part of that composite supply is ancillary As per the Circular No.11/11/207-GST, dated 20.10.2017 issued by CBIC, Govt. of India, Ministry of Finance (Deptt. Of Revenue) wherein it has been clarified that in the case of printing of hooks, pamphlets, brouchures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing (of the content supplied by the recipient of supply) is the principal supply and therefore such supplies would constitute supply of service falling under heading 999295 of the scheme of classification of services. Vide Circular No.11/11/2017-GST the clarification of taxability of printing contracts is given as follows: Para 4. it is clarified that printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... printing of books, pamphlets, brochures, annual reports, and the like where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing (of the content supplied by the recipient of supply) is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. Even though the activity of printing of test paper/question papers is not mentioned in services mentioned in Para 4(as quoted above) of the Circular No.1 1/2017-Central Tax(Rate) dated 20.10.2017, the intent is that the ownership of usage rights to the intangible inputs lies with the Universities, Educational Boards/Institutes is also applicable in the instant case and the supply of service in the instant case would constitute supply of service falling under CH 9989. However, as per entry no.66 of Notfn.No.12/2017-Central Tax dt.28.6.207, the exemption is available to the service falling under CH 9992. Therefore, the department is of the view that the activity undertaken by the taxpayer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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