In Re: M/s. Edutest Solutions Private Limited (Previously known as Confisec Private Limited)
GST
2018 (10) TMI 201 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 77 (A. A. R. – GST
AUTHORITY FOR ADVANCE RULING, GUJARAT – AAR
Dated:- 23-8-2018
GUJ/GAAR/R/2018/16 In Application No. AAR/SGST & CGST/2017/AR/34
GST
SHRI R.B. MANKODI AND G.C. JAIN MEMBER
Present for the Applicant: Shri Priyam R. Shah
The applicant M/s. Edutest Solutions Private Limited (previously known as Confisec Private Limited) is engaged in business of confidential printing of educational test papers, which requires team of highly experienced and talented persons and maintenance of top secrecy, accuracy and timely delivery of the material is essential part of work. The applicant is doing printing of educational test papers for Secondary and Higher Secondary Education Boards of various states and also at the national level and for various education institutes.
2. The applicant su
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s per Chapter Heading 4901, Printing of Books attracts no GST since they have been given exemption in view of their contribution to the betterment of society through the field of education, applicant's work is also part of the same objective. It is submitted that since exemption is given for printing of books, printing of question papers should also be exempted. The applicant has submitted that the printing of question paper is of secret / confidential nature therefore it should attract Nil rate / exempt from tax, otherwise disclosure of name of customer / buyer in Tax Invoice and providing details in GSTR 1 in certain cases would be contradictory to secrecy clause of agreement.
4. The applicant, vide letter dated 05.02.2018 further submitted that Sr. No, 66 of Notification No. 12/2017-CentraI 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 serv
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or advance ruling –
(i) 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.
(ii) 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; or
(iii) If it is supply of goods, then question paper printing should be treated as exempted goods at Sr. No. 1 19 of exempted list liable at Nil rate of tax under Chapter heading / subheading of 4901 10 10 of “Printed books including Braille books”, or
It should be covered by Schedule I at Sr. No. 201 liable to tax at 2.5% under “Brochures, leaflets and similar printed matter, whether or not in single sheets”.
7.1 The Central Goods and Services Tax and Central Excise Commissionerate, Ahmedabad North
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ring and views of the Central Goods and Services Tax and Central Excise Commissionerate, Ahmedabad North.
9. The first issue to be decided in this case is whether activity of printing of test papers / question papers by the applicant for its clients (Secondary and Higher Secondary Education Boards of various states, other educational institutes and others) should be treated as supply of goods or supply of service.
10.1 The Government of India, Ministry of Finance, Department of Revenue, Tax Research Unit, vide Circular No. 11/11/2017-GST dated 20, 10.2017, has issued clarification on taxability of printing contracts, as follows-
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
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oards / Educational Institutes. The scope of work of the applicant relates to compose, typeset, print, pack, transport, unload and supply sealed Question Papers to the Education Board / Educational Institutes.
10.3 As the usage rights of the manuscript material of Question Papers (intangible inputs) are owned by the Education Boards / 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.
11. The next issue which arises for consideration is 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 aforesaid supply of service.
12.1 Sr. No. 66 o
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alent.
NIL
NIL
12.2 The said Sr. No. 66 of Notification No. 12/2017-CentraI Tax (Rate) dated 28.06.2017 has been amended vide clause (o) of Notification No. 2/2018-CentraI Tax (Rate) dated After such amendment, the said Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) reads 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;
(aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee;]
(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 educationa
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igher 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;
13.1 Thus, as per Sr. No. 66(b)(iv) of Notification No. 12/2017-Centra1 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.
13.2 In the sub-item (iv) of item (b) of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate), as amended, the phrase used is 'services relating to admission to, or conduct of examination by, such institution'. Hon'ble High Court of Bombay, in the cate of Coca Cola India Pvt. Ltd. vs. Commissioner of Central Excise, Pune-III [2009 (242) E.L.T. 168 (Bom.)] = 2009 (8) TMI 50 – BOMBAY HIGH COURT, has held that the phrase 'relating to' widens the scope and observed a
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15 – ALLAHABAD HIGH COURT, and 76 Corpus Juris Secundum 621. Assuming that the investments in shares and in lands do not form part of the undertakings but are different subject matters, even then these would be brought within the purview of the vesting by reason of the above expressions. In this connection reference may be made to 76 Corpus Juris Secundum at pages 620 and 621 where it is stated that the term relate is also defined as meaning to bring into association or connection with. It has been clearly mentioned that relating to has been held to be equivalent to or synonymous with as to concerning with and pertaining to. The expression pertaining to is an expression of expansion and not of contraction.
The expression Relating to thus widens the scope of the definition.”
Therefore, 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
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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 Paragraph 2 of Notification No. 12/2017-Central Tax (Rate) 'educational institution' means an institution providing services by way of education (pre-school education and education up to higher secondary school or equivalent, education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force, or education as a part of an approved vocational education course). The benefit of Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate) is admissible only in a case where service is provided to an educational institution.
14.1 Sr. No. 27 of Notification No. 11/2017-CentraI Tax (Rate) dated 28.06.2017 has been amended vide Notification No. 20/2017-Centra1 Tax (Rate) dated 22.08.2017 and 31/2017-Central Tax (Rate) dated 13.10.2017. After such amendment, the said Sr. No. 27 of Notification No. 11/2017-Cent
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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 under heading 9989 of the scheme of classification of services.
(ii) The service provided by M/s. Edutest Solutions Private Limited (GSTIN 24AAGCC5475Q2Z1) 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.
The service provided by M/s. Edutest Solutions Private Limited (GSTIN 24AAGCC5475Q2Z1) 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 Tax (Rate), as amended.
(iii) As the activity of printing of question papers by M/s. Edutest Solut
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