2018 (12) TMI 1227 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – TMI – Classification of supply – supply of goods or supply of services? – export of services or not – activities undertaken by procuring orders from a foreign party to print religious texts and thereafter deliver them to various places in India – Held that:- The Applicant is supplying the service of printing the Bible (the purchase orders and the tax invoice refer to supplying of printing service classifiable under heading 9989) to the recipient located in India – also, the Applicant’s supply is not the export of service, as the recipient of the service is located in India. It violates clause (b) of section 2(6) of the IGST Act.
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Furthermore, both the purchase orders and the tax invoice are in INR. Although the Applicant argues that the consideration is being received in US dollars, he has not clarified nor produced any evidence of how payment for purchase orders in INR and tax invoice raised in INR are made in fore
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supply of goods or supply of services . The Applicant also seeks a Ruling as to whether this activity can be classified as export . Advance Ruling is admissible on the first question under section 97(2)(a) of the CGST/ WBGST Acts, 2017 (hereinafter referred to, collectively, as the GST Act ). The definition of export however, falls under section 2(6) of the Integrated Goods and Services Act, 2017 (hereinafter referred to as the IGST Act ) and a ruling thereon is out of the purview of this Authority. However, inherent to the concept of whether or not a supply is to be considered as export is the issue of determination of liability to pay tax on any supply of goods or services, or both, which is admissible for consideration under section 97(2)(e) of the GST Act. The Applicant further submits that the question raised in the Application is neither decided by nor pending for decision before any authority under any provisions of the GST Act. The officer concerned raises no objection to the
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se versions. 3. It is clear from the above that the rights of the content of the printed matter do not lie with the Applicant. At best it can be said that the Applicant is providing a composite supply wherein the supply of printing a content, rights of which lie with another and thus debarring all likelihood of transfer of title from the Applicant, is the principal supply and the physical inputs, such as paper, ink, binding material, labour etc., are ancillary to this principal supply. 4. TRU Clarification issued under F. No. 354/263/2017-TRU dated 20th October 2017 by the Ministry of Finance, Department of Revenue, Government of India, clearly states in Serial no. 4 that:- In 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 belongs to the printer, supply of printing [of content supplie
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re required to be delivered to the recipient s branch in India. This apart, as evident from the tax invoice and from the Applicant s written submission, persons specified by the recipient and located in India also take delivery on behalf of The Gideons International. Such persons, who receive the supply on belalf of the recipient, are also considered recipient, as defined under section 2(93) of the GST Act. The Applicant is, therefore, supplying the service of printing the Bible (the purchase orders and the tax invoice refer to supplying of printing service classifiable under heading 9989) to the recipient located in India. According to section 2(6) of the IGST Act, export of services means the supply of any service when a) the supplier of service is located in India; b) the recipient of service is located outside India; c) the place of supply of service is outside India; d) the payment for such service has been received by the supplier of service in convertible foreign exchange; and e
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