2019 (2) TMI 65 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – TMI – Classification of supply – Supply of goods or supply of services – composite supply or principal supply? – supply of books by CHHATTISGARH TEXT BOOK CORPORATION as per instruction of School Education Department CG [Loksikshan Sanchnalay) after printing the Syllabus decided by the SCERT – supply of books by CHHATTISCARH TEXT BOOK CORPORATION as per instruction of various agencies of school Education Department CC such as Rajiv Gandhi Siksha Mission/ SCERT/office of District education officer etc.- zero rate sales or not – Held that:- It is clear from the information provided by CHHATTISGARH TEXT BOOK CORPORATION that as per standing order issued by the State Government it performs activities related to various academic classes – the State Government has constituted the CHHATTISGARH TEXT 300K CORPORATION for various task in a continuous manner according to which CHHATTISGARH TEXT BOOK CORPORATION supplies the books ow
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ved that had it been the case where the printer of books engaged by Chhattisgarh Text Book Corporation for getting the books printed where only the 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 the content supplied by the recipient of supply] would definitely qualify being treated as the principal supply and such supplies would constitute supply of service, which is not the case here.
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This, in this case supply of goods is involved i.e. ‘supply of specified printed educational books'/ which is the principal supply and accordingly, the said supply merits being treated as “printed books” attracting zero rate as specified under serial no. 119 (“Printed books, including Braille books”) of notification no. 2/2017-State Tax (Rate) No. F-10-43/2017CT/V/70/ Dated 28-06-2017. – STC/AAR/08/2018 Dated:- 24-12-2018 – SHRI S.K. BUXY
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T would tantamount to supply of service and will fall under Services Accounting Code 9989 accordingly amenable to tax @12%? 3. Whether the books which the CHHATTISGARH TEXT BOOK CORPORATION is supplying as per instruction of various agencies of school Education Department CG such as Rajiv Gandhi Siksha Mission/SCERT/ office of District education officer etc. would tantamount to supply of goods and will fall under the zero rated goods. 4. Whether the books which the CHHATTISCARH TEXT BOOK CORPORATION is supplying as per instruction of various agencies of school Education Department CC such as Rajiv Gandhi Siksha Mission/ SCERT/office of District education officer etc. would tantamount to supply of service and will fall under Services Accounting Code 9989 accordingly amenable to tax @12% 2. Facts of the case:- CHHATTISGARH TEXT BOOK CORPORATION is a registered society under Chhattisgarh society registration Act, 1973 which is run by Government and Non-Government officers. CHHAITISGARH TE
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HATTISGARH TEXT BOOK CORPORATION calls for Annual Board meeting of executive consisting of Government and Non-Government members in which the council/Board decides for curriculum of various classes of new academics, printing of books, distribution-transportation etc. and price fixation of books including all expenses. on above basis the annual invoices are dispatched to the State Government for payment. With regard to above works, the applicant wants clarification regarding tax rate liability on such supply as per the GST Act. 1. that, CG Text book Corporation (hereinafter referred as TBC or CGTBC) i.e. an extended arm of School Education department of Chhattisgarh is registered with Chhattisgarh Society Registration Act 1973 on 05/08/2004 as Society. The Government has also formulated the byelaws which also contain the details in respect of members of the TBC and the member includes the Minister of Education Chhattisgarh Government, Secretary to education department Chhattisgarh (IAS)
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pers from paper manufacturers and provide such papers to job workers for printing the content as provided by SCERT along with the patterns/layout of the books which TBC specifically decides. 5. that, then TBC circulates such books in different areas as directed by the Government, further to enhance its circulation of Book' CHHATTISGARH TEXT BOOK CORPORATION has opened various depots and has also given online facility to purchase from their site' 6. that, in case any book is left with the CHHATTISGARH TEXT BOOK CORPORATION after distribution or damage of book or in case the content provided by the SCERT is incorrect' only TBC is responsible for such losses incurred. Therefore, TBC has to write-off such losses in its books of Accounts. 7. that, CHHATTISGARH TEXT BOOK CORPORATION takes syllabus and Content from the Author i.e, SCERT and get it printed from printing agency and publishes such books for the purpose of distribution in market, and that, the whole process is related
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ublishes such books and sell such handbook in the open market in lieu of consideration for which no GST is charged from the ultimate consumer/purchasers as supply of books is Exempted under entry no. 119 of Notification No. 2/2017-Central Tax (Rates) dated 28thJune, 2017; 9. that, similarly, CHHAITISGARH TEXT BOOK CORPORATION is working as Oakbridge publishing private limited which merely get the books printed from printing agency i.e. M/s. Shriram printers and stationeries and is engaged in publishing of books and sell such books to government schools. Hence, such supply of books is covered under HSN 4901 and hence GST Rate will be NIL on such work done by the CHHAITISGARH TEXT BOOK CORPORATION. Thus, in the above context, T BC has submitted the application seeking advance ruling on four grounds as mentioned in the application, however, as question 3 and question 4 is related to question 1 and question 2 only, therefore, their main concern is for the 1st two question only (i.e. questi
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nt of Education gives instructions to CHHATTISGARH TEXT BOOK CORPORATION to provide books in various schools. On receipt of such instructions from SCERT regarding contents, CHHATTISGARH TEXT BOOK CORPORATION, it purchases paper from paper manufactures for the purpose of printing of books. Then it provides such paper to job workers for printing the content as provided by SCERT along with the patterns/layout of the books which it specifically decides. CHHATTISGARH TEXT BOOK CORPORATION also circulates such books to its various depots which it has opened in many areas for distribution purpose. It also provides online facilities to purchasers to purchase books online from their website. Finally it distributes such books of different literature at economical prices or free of cost to all the Government/ private, subsidized and non-subsidized schools. In case any book is left with the CHHATTISGARH TEXT BOOK CORPORATION after distribution, such loss is bearable by CHHATTISGARH TEXT BOOK CORPO
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ration Act/ 1973 w.e.f. 11-08-2004. It undertakes the works allotted by the Chhattisgarh Education Department. On the basis of documents submitted by the CHHAITISGARH TEXT BOOK CORPORATION during the course of personal hearing it gets amply clear that it is engaged in betterment and promotion of all education in the State specially primary, middle, high and higher education; manufacture, print/ publish, distribute books as per approved syllabus of the State Government and all other related works. As per the byelaws, CHHATFISGARH TEXT BOOK CORPORATION comprises of the following Board members:- i. Chairman – Minister, School Education Department, Chhattisgarh. ii. Member Secretary – Secretary, School Education Department, Chhattisgarh. iii. Secretary Finance Department, Chhattisgarh or its representative not below the rank of Deputy Secretary. iv. Director Public Education, Chhattisgarh. v. Chairman, Chhattisgarh Board of Secondary Education. vi. Controller, Government Press, Chhattisgar
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m Percentage 1. Administrative expense 20 2. Transport expense 05 3. Expense on patterns/design/manufacture of books 02 4. Wastage/paper related to books 03 5. Amount of color proof/positive making of books to be published. ₹ 1/- Per book 6. Amount of royalty 08 Apart from the above, approximately 52% expenses consist of paper purchase cost and publishing cost. As per the minutes of Board meeting, separate tender is being invited for printing of books and for purchase of paper to be given to the printers. 5.4 It is clear from the information provided by CHHATTISGARH TEXT BOOK CORPORATION that as per standing order issued by the State Government it performs following activities related to various academic classes : i. To prepare syllabus. ii. Printing of books. iii. Upkeep of books and distribution to schools. iv. Under distribution mainly the work of transportation. As per the applicant under above mentioned works specified books are being supplied mainly to School Education Depa
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jiv Gandhi Shiksha Mission, publishing works, transportation works. ii. The applicant also undertakes the work of writing off the books remaining after its distribution to the School Education Department and Rajiv Gandhi Shiksha Mission for every academic and class as per their demand. CHHATTISGARH TEXT BOOK CORPORATION incurs losses on account of write off, of books, which is shown in its books of account. In the Board meeting No. 41 date 15-09-2015 for the year 2015-16, the decision to write off 166 tons of books by means of open tender, of all the unused books of all 14 depots, has been taken. From the above facts it is clear that the State Government has constituted the CHHATTISGARH TEXT 300K CORPORATION for the above mentioned task in a continuous manner according to which CHHATTISGARH TEXT BOOK CORPORATION supplies the books owned and printed by it to School Education Department and Rajiv Gandhi Shiksha Mission every year whose syllabus is being approved by the experts. Section 2
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TION to prepare specified educational books every year as per the syllabus as approved by the experts, get the books printed class-wise and to transport the same to specified schools. Separate amount is being determined for every work according to which the sale price of specified educational books is fixed. In the instant case in hand, ownership of printed books is never transferred to the School Education Department and Rajiv Gandhi Shiksha Mission etc. i.e. here the ownership of printed books at all times, lies with the CHHATTISGARH TEXT BOOK CORPORATION and more-over the sale price is being computed with reference to 'sale of books' in applicant's books of accounts. Supply of books, 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. It is t
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f the evidences furnished before us and as discussed above, we are inclined to hold that in this case supply of goods is involved i.e. supply of specified printed educational books'/ which is the principal supply and accordingly we come to the considered conclusion that the said supply merits being treated as printed books as specified under serial no. 119 ( Printed books, including Braille books ) of notification no. 2/2017-State Tax (Rate) No. F-10-43/2017CT/V/70/ Dated 28-06-2017. In view of the aforesaid deliberations and discussions, we pass the following order:- ORDER (Under section 98 of the Chhattisgarh Goods and Services Tax Act, 2017) No. STC/AAR/08/2018 Raipur Dated 24/12/2018 The ruling so sought by the Applicant is accordingly answered as under:- Supply of specified printed Educational books by CHHATTISGARH TEXT BOOK CORPORATION as per the instructions of School Education Department CG [Loksikshan Sanchnalay) or as per instruction of various agencies of school Educatio
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