In Re: Swapna Printing Works Private Limited
GST
2018 (12) TMI 1227 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2019 (20) G. S. T. L. 663 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 21-12-2018
28/WBAAR/2018-19 Case No. 26 of 2018
GST
SYDNEY D'SILVA AND PARTHASARATHI DEY MEMBER
Applicant's Representative: Indranil Das, CA
1. The Applicant, stated to be engaged primarily in the business of printing, seeks a ruling on whether activities undertaken by procuring orders from a foreign party to print religious texts and thereafter deliver them to various places in India can be classified as “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 sect
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
inting and binding Bibles. The version of the Bible is specified by the customer under the Evangelistic version of the text.
Under the Berne Convention copyright is granted to the author on the creation of work, but in the case of religious texts copyrights are granted to editions if they are unique or are translations. In the United Kingdom, the King James' Version of the Bible is covered by a Crown Copyright.
The Gideons International uses the King James' version of the Bible and distributes various editions of the same. The versions the Applicant prints for The Gideons International mention the name of the organization and establish their rights on those 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 fro
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ing is found to the contrary, will be leviable to GST @ 12% under Serial No. 27(i) of Notification No 11/2017-CT (Rate) dated 28.06.2017, as amended by Notification No 31/2017-CT(Rate) dated 13.10.2017.
5. The Applicant submits photocopies of purchase orders received from The Gideons International (PO18449 dated 23/02/2018 and PO18765 dated 31/08/2018), and Tax Invoice No. 29/08/2018 dated 29/08/2016, as a prototype of such invoices. The analysis of the transactions is, therefore, based on the Applicant's written submission and the above-mentioned purchase orders and prototypes of tax invoices.
It appears from the purchase orders that printed copies of the Bible are 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 reci
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
IGST Act.
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 foreign currency. It raises doubt about violation of condition under clause (d) of Section 2(6) of the IGST Act as well.
The Applicant, therefore, is making domestic supplies, on which he is liable to pay GST.
In view of the foregoing, we rule as under
RULING
The Applicant's activity of printing the Bible under the specific orders received from The Gideons International is a supply of service classifiable under SAC 9989.
The above service is supplied to the recipient located in India and the consideration is apparently received in INR. The Applicant is, therefore, liable to pay GST under the appropriate Act on such supplies.
This Ruling is valid subject to the provisions under Section 10
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =