TMI Blog2023 (9) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... apers 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 the content given by the educational institutes - Printing of test papers/question papers is the Principal supply of the composite supply, made by the applicant, which involves goods and services i.e. papers and printing services. 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 Questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... athi Nagar Hyderabad, Rangareddy, Telangana -500090 (36AADCV2323F1ZN) has filed an application in FORM GST ARA-01 under Section 97(1) of TGST Act, 2017 read with Rule 104 of CGST/TGST Rules. 2. At the outset, it is made clear that the provisions of both the CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression GST Act would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- under SGST and Rs. 5,000/- under CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided nor are pending before any authority under any provisions of the CGST/TGST Act 2017. The application is, therefore, admitted after examining it and the records called for and after hearing the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s like marks card, grade card, certificates to the educational boards of up to higher secondary is exempt from GST? 3. Is Scanning and processing of results of examinations exempt from GST? 4. Whether the Applicant is entitled to avail the exemption on above services as per entry no.66 of the Notification No. 12/2017-Central Tax (Rates), Dt. 28-06-2017? 6. PERSONAL HEARING: The Authorized representatives of the unit namely Sri. Nagendra Prasad, Advocate, attended the personal hearing held on 24.05.2023. The authorized representative reiterated averments in the application submitted. 7. DISCUSSION FINDINGS: 7.1 The applicant has sought clarification regarding the applicability of the exemption for the services such as: Supply of Printing of Pre-examination items like printing services viz; OMR sheets, Answer sheets, marks card etc. to an educational institution. Printing of Post-examination items like marks card, grade card, certificates to the educational boards of up to higher secondary. Scanning and processing of results of examinations. Whether the Applicant is entitled to avail the exemption on above services as per entry no. 66 of the Notification No. 12/2017-Central Tax (Rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucational institution to successfully conduct the examination. As printing of pre-examination items service used by the educational institution for conduct of examination, applicants is of the view that, exemption mentioned in S. No 66(b)(iv) of Notification No. 12/2017-Central tax(Rate) is clearly applicable in their case and GST is exempt on printing of pre examination items. 7.5 Scanning and processing of results service to educational institution are also exempt from GST as per S. No 66(b)(iv) mentioned above, as scanning and processing of the results is the second step for successfully completing the examination by an educational institution. As scanning and procession of the results services are relating to conduct of examination by an educational institution, GST is exempt in applicant s case. 7.6 Applicant is of the view that, printing of post examination items like marks card, grade card, certificates, etc. to educational institution is also exempt from GST based on the S. No 66(b)(iv) mentioned above as marks card or grade cards are the last step in the conduct of examination by the an educational institution. Printing of post examination items serve as a medium for commu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 7.11 The applicant further submits that the pre-examination and post examination documents, being printed for clients based on the data/logo/design provided has confidentiality and even the applicant cannot divert or deal with the said content, except for providing the services required by the customers. Thus, the applicant submits that the primacy in the entire activity is dominated by the content supplied by the examination authorities vis-a-vis physical inputs procured at the direction of the examination authorities by the applicant. In view of the above factual situation read with the clarification issued by CBIC cited supra, the applicant submits that the activity rendered by them is classifiable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the content supplied by the recipient of supply] is the principal supply and the same is clarified by Circular No. 11/11/2017-GST dated 20.10.2017. 7.17 Relevant extract of Circular No. 11/11/2017-GST dated 20.10.2017 is produced below: 2. In the above context, it is clarified 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. 3. Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax Act as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. 4. In the case of 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndary school or equivalent; or (ii) education as a part of an approved vocational education course. NIL NIL 7.20 Educational Institution has been defined in the Notification No. 12/2017-Central Tax (Rate) 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 recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; 7.21 Therefore, 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 goods in this Notification and the principal supply of the composite supply made by the applicant is printing services. 7.22 Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate) reads as follows : Sl.No. Chapter, Section or Heading Description of Services ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amination to the students 4(ii) GST is also 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 notif No. 12/2017-CT(R)]. 7.25 The applicant submitted that Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (tax free services) refers to Heading 9992 Educational services, which includes pre-primary education services, primary education services, secondary education services, higher education services, specialized education services and also other education and training services and education support services. The applicant submitted that its services are covered at Sr. No. 66(b)(iv), which covers Services provided to an educational institution, by way of, services relating to admission to, or conduct of examination by, such institution, upto higher secondary . The word upto higher secondary have been omitted at aforesaid Sr. No. 66 vide Notification No. 2/2018-Central Tax (Rate) dated 25.01.2018. 7.26 Therefore it was clarified that GST is exempt o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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