2018 (10) TMI 201 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 77 (A. A. R. – GST – Classification of Supply – Supply of goods or services? – Levy of GST – activity of printing of question papers for Secondary and Higher Secondary Education Boards of various states and also at the national level and for various education institutes – N/N. 2/2017-Central Tax (Rate) dated 28.06.2017.
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Whether activity of printing of question papers on behalf of educational institutions can be classified as activity of supply of goods or supply of services?
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If it is supply of services, referring to Sr. No. 27 of Notification 11/2017-CTR dtd : 28.06.2017 as amended by Notification 31/2017-CTR dtd.: 13.10.2017, then benefit of Sr. No. 66 of Notification 12/2017-CTR dtd.. 28.06.2017 is allowable, as amended by Notification No. 2/2017-CTR of 25.01.2018?
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If it is supply of goods, then question paper printing should be treated as exempted goods at Sr. No. 1 19 of exempted li
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oards / Educational Institutes and the physical inputs used for printing belong to the applicant, supply of printing is the principal supply in this case and the same would constitute supply of service falling under heading 9989 of the scheme of classification of services.
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Applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, or Sr. No. 27 of Notification No. 11/2017-CentraI Tax (Rate) dated 28.06.2017, as amended, (and corresponding Notifications issued under the Gujarat Goods and Services Tax Act, 2017) to the supply of service – Held that:- The expression ‘relating to’ used in sub-item (iv) of item (b) of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) widens the scope of the said entry and printing of question papers would be covered by the phrase ‘services relating to admission to, or conduct of examination by, such institution’ – the supply in this case would constitute supply of service falling under heading 9989
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e covered by Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), as amended, and will attract Goods and Services Tax @ 12% (CGST 6% + SGST or IGST 12%).
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Ruling:- The activity of printing of question papers by M/s. Edutest Solutions Private Limited is activity of supply of service classifiable under heading 9989 of the scheme of classification of services.
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The service provided by M/s. Edutest Solutions Private Limited to educational institutions by way of printing of question papers for conduct of examination by such institutions would be covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), as amended and Notification No. 12/2012-State Tax (Rate), as amended.
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The service provided by M/s. Edutest Solutions Private Limited to service recipients other than educational institutions by way of printing of question papers would be covered by Sr.No. 27(i) of Notification No: 11/20.17-Central Tax (Rate), as-amended, and Notification No. 11/2017-State
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t submitted that as per its understanding, the product is covered by Section X Chapter 49 which Covers Printed books, newspapers, pictures and other products of the printing industry, manuscripts, typescripts and plans . The applicant referred to entry at Sr. No. 119 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, as amended, which provides Nil rate for Printed books, including Braille books of Chapter Heading 4901. The applicant also referred to entry at Sr. No. 201 of Schedule-I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended, which provides CGST Rate of 2.5% for Brochures, leaflets and similar printed matter, whether or not in single sheets of Chapter Heading 4901. 3. The applicant submitted that its entire operations are in the education field, since it is doing printing of exam question papers for various Universities and Education Boards. All its clients are Government Bodies – both Central and State Governments. It is submitted that as
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s, 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 . It is further submitted that 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. The applicant submitted that all services which it is providing to educational institution as defined at Sr. No. (y) of definition provided in Notification No. 12/2017- Central Tax (Rate) are exempt services under GST law. 5. The applicant also referred to Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate), as amended vide Notification No. 31/2017-Central Tax (Rate), 6. The applicant raised the following questions for advance
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that printed Question Paper are not covered under any of the Headings from 4901 to 4910, it is classifiable under Heading 4911 covering Other printed matter, including printed pictures and photographs , more specifically under HS Code 4911 99 90, with applicable GST Rate of (6% + 6%). 7.2 The Central Goods and Services Tax and Central Excise Commissionerate, Ahmedabad North also referred to Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended, covering services falling under Heading 9989. In view of the above, it has been informed that the supply being 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. We have considered the submissions made by the applicant in their application for advance ruling, in additional submission as well as at the time of personal hearing and views of the Ce
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what constitutes the principal supply. 3. Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax ACI 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 belong 10 the printer, supply of printing [of the content supplied by [he 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. 10.2 The manuscript material for printing the Question Papers relating to the examinations is supplied to the applicant by the Education Boards / Educational Institutes. T
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ax (Rate) dated 28.06,2017 read as follows – (1) (2) (3) (4) (5) Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Conditions 66 Heading 9992 Services provided – (a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; up to higher secondary: Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. NIL NIL 12.2 The said Sr. No. 66 of Notification No. 12/2017
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tution; (v) supply of online educational journals or periodicals. Provided that nothing contained in sub-items (i), (ii) and (iii) of item (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent: Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution providing services by way of; (i) pre-school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course. NIL NIL 12.3 Educational Institution has been defined vide clause (y) of Paragraph 2 of the said Notification No. 12/2017-CentraI 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 recogn
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widens the scope of the expression activities relating to business. This is in view of following observations of Supreme Court in Doypack Systems (P) Limited Vs Union of India 1988 (36) ELT 201 (SC) = 1988 (2) TMI 61 – SUPREME COURT OF INDIA, interpreting the expression in relation to: 48. The expression in relation to (so also pertaining to), is a very broad expression which pre-supposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context, see State Wakf Board v. Abdul Aziz (A.I.R. 1968 Madras 79, 81 = 1966 (3) TMI 84 – MADRAS HIGH COURT, paragraphs 8 and 10, following and approving Nitai Charan Bagchi v. Suresh Chandra Paul (66 C.W.N. 767) = 1961 (2) TMI 70 – CALCUTTA HIGH COURT, Shyam Lal v. M. Shayamlal (A.I.R. 1933 All. 649) = 1933 (4) TMI 15 – ALLAHABAD HIGH COURT, and 76 Corpus Juris Secundum 621. Assuming that the investments in shares and in lands do not form part
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, the supply in this case would constitute supply of service falling under heading 9989 of the scheme of classification of services, whereas column 2 of Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate) refers to Heading 9992. However, Explanation (ii) at Para 3 of the Notification No. 12/2017-Central Tax (Rate), as amended, clarifies that Chapter, Section, Heading, Group, or Service Code mentioned in Column (2) of the Table are only indicative . Therefore, merely on the ground of classification of the service of the applicant under heading 9989 would not preclude it from being covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), if it is otherwise covered under the said entry. 13.4 Therefore, services provided by the applicant to educational institutions by way of printing of question papers for conduct of examination by such institutions would be covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), as amended. 13.5 As defined in clause (y) of
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eading 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 – 14.2 The service of printing of question paper, supplied by the applicant to other than educational institutions will be covered by Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), as amended, and will attract Goods and Services Tax @ 12% (CGST 6% + SGST or IGST 12%). 15. In view of the foregoing, we rule as under – RULING (i) The activity of printing of question papers by M/s. Edutest Solutions Private Limited (GSTIN 24AAGCC5475Q2Z1) is activity of supply of service classifiable und
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