TMI Blog2023 (6) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... r No. 11/11/2017-GST dated 20.10.2017. Printing of test papers/question papers is the Principal supply of the composite supply and HSN classification of the entire supply should be done based on Principal supply. Supply of test papers/question papers would constitute supply of service falling under heading 9989 of the scheme of classification of services as the usage rights of the manuscript material of Question Papers/test papers (intangible inputs) are owned by the Educational Institutes and the physical inputs used for printing the same belong to the applicant. Applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended vide clause (o) of Notification No. 2/2018-Central Tax(Rate) dated 25.01.2018, read with Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT:- As per Sr. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate), as amended, services provided to an educational institution, by way of services relating to admission to, or conduct of examination by, such institution is exempted from payment of Goods and Services Tax. It is to be noted that exemption is given only to services and not to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd certificates. They have contended in their submissions that they provide printing services to various educational institutions based on their requirements using the paper and ink of the applicant. That the products are designed and printed as per the requirements of particular customer and that such products cannot be delivered to any other person as printing in the applicant case is combined with security features in many products like cheque books so as to prevent misuse by forgery/replication by unauthorized persons. The applicant further submitted that they also provide the customer s specific documents like invoices to be issued by the clients, consignment notes, letter heads, annual reports/brochures, which are specific to particular customer and cannot be used in general or cannot be supplied at large. The applicant seeks classification of the products and applicability of exemption given under notification 12/2017, dt. 28.06.2017 at serial no. 66(b)(iv), hence this application. 4.2 Company Background Y.S. Hitech Secure Print Private Limited is a Private incorporated on 11 March 1999. It is classified as Non-govt company and is registered at Registrar of Companies, Hydera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to admission to, or conduct of examination is also exempt from GST [sl. No. 66 (b)(iv)-12/2017-CT(r)]. Educational institutions are defined at 2(y) of the said notification as follows- (y) educational institution means an institution providing services by way of, - (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force; (iii) education as a part of an approved vocational education course; Further, clause (iv) of Explanation of said notification reads as below: (iv) For removal of doubts, it is clarified that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students Therefore it was clarified that GST is exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notification for examination, admit card and questions papers etc, when provided to such Boards under S. No. 66 (b) (iv) of Notification No. 12/2017-CT(R). As seen fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 89. In view of the above, the supply made by the applicant may either be considered as supply of goods falling under HS Code 4911 9990, attracting 12% GST or be considered as supply of service covered under Heading / Service Code 9989, attracting 12% GST. 8.6 The issue to be decided in this case is whether the supply of test papers/question papers by the applicant for educational institutes should be treated as supply of goods or supply of service as the applicant makes the supply using the paper and ink owned by him. 8.7 The supply made by the applicant cannot be classified as selling of question papers to the educational institutes as the content to be printed on them is given by the latter to the applicant. The supply of Printed Question Papers cannot be in toto categorised as supply of goods to the educational institutes, as this is not a case where readymade printed material is bought by recipient who does not own the content in the material to be bought, but it is a composite supply of providing printing services on the papers owned by him. This composite supply involves both supply of printing services and supply of the paper owned by him on which the printing is done as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al 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. 8.12 Therefore it is clear from the above that Printing of test papers/question papers is the Principal supply of the composite supply and HSN classification of the entire supply should be done based on Principal supply. Supply of test papers/question papers would constitute supply of service falling under heading 9989 of the scheme of classification of services as the usage rights of the manuscript material of Question Papers/test papers (intangible inputs) are owned by the Educational Institutes and the physical inputs used for printing the same belong to the applicant. 8.13 The next issue to be examined is applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended vide clause (o) of Notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposite supply made by the applicant is printing services. 8.16 Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate) reads as follows: Sl.No. Chapter, Section or Heading Description of Services Rate (per cent.) Condition 27 Heading 9989 (i) Services by way of printing of all goods falling under Chapter 48 or 49 [including newspapers books (including Braille books), journals and periodicals], which attract CGST @ 6 per cent. or 2.5 per cent. or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer. 6 - (ii) Other manufacturing services; publishing, printing and reproduction services; materials recovery services, other than (i) above. 9 - 8.17 The service of printing of question papers, if supplied by the applicant to other than educational institutions would attract Goods and service tax at rate as specified under Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), as amended, at rate of 12% (CGST 6% + SGST 6% or IGST 12%). 8.18 In this connection, it is to inform that the CBIC has issued a Circular No. 151/07/2021-GST dated 17.06.2021 issued vide F.No.CBIC- 190354/36/2021 and has clarified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his is a composite supply, of which Printing services is the principal supply, as defined under Section 2(90) of the Central Goods and Services Tax Act, which makes HSN classification of the supply to be done on printing services which falls under heading 9989. As it is a service done to educational institutions the exemption under S. No. 66 (b) (iv) of Notification No. 12/2017-CT(R) can be availed by him as the said Notification details the services provided to educational institution which are exempt. The same is clarified by Circular No. 151/07/2021-GST CBIC- 190354/36/2021 dated: 17.06.2021 while dealing with the issue of supply of various services by National and State Boards.. 9. From the above, the Authority for Advance Ruling concurred in the Ruling and has discussed it independently. 10. In view of the foregoing, the ruling is given as under: In view of the above discussion, the questions raised by the applicant are clarified as per the below rulings: Questions Ruling Is the supply of printing services like question papers, OMR sheets, Answer sheets, marks card etc to an educational institution exempt from GST? Supply of Printing of test papers/question papers, OMR sheets, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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