2019 (2) TMI 1008 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – 2019 (21) G. S. T. L. 211 (A. A. R. – GST) – Rate of tax – Classification of supply – supply of goods or services – books which the Chhattisgarh Text Book Corporation is supplying as per instruction of School Education Department CG [Loksikshan Sanchnalay] after printing the Syllabus decided by the SCERT – zero rated goods or not – books which the Chhattisgarh Text Book Corporation, is supplying as per instruction of School Education Department [Loksikshan Sanchnalay] after printing the Syllabus decided by the SCERT – 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. – 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
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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.
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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 to be noted that in case of composite supplies, taxability is determined by the principal supply – In the instant case the applicant, Chhattisgarh Text Book Corporation has submitted that it provides such pa
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s :- 1. Whether the books which the Chhattisgarh Text Book Corporation is supplying as per instruction of School Education Department CG [Loksikshan Sanchnalay] after printing the Syllabus decided by the SCERT would tantamount to supply of goods or supply of Service and fall under HSN Code 4901 zero rated goods. 2. Whether the books which the Chhattisgarh Text Book Corporation, is supplying as per instruction of School Education Department [Loksikshan Sanchnalay] after printing the Syllabus decided by the SCERT 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 Chhattisgarh Te
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print, publish and distribute all types of books for school and colleges, books for the teachers, training materials and undertake all related works. 3. To undertake all tasks related to improve academics, valuation issues in educational institutes. 4. To prepare useful literature for educational institutes and its printing, publishing and distribution. 5. To manufacture books approved by Chhattisgarh Government and related works of printing, publishing and distribution. Thus, to undertake all the above works Chhattisgarh 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 ta
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Government; prescribes the syllabus and the content of the book. The Text Book Corporation gets the syllabus from the SCERT for which it pays royalty to SCERT in lieu of consideration. Thus, the content is owned by the SCERT. Further, in every book being supplied they are duly mentioning the publisher's name i.e. CG Text Book, Content Owner as SCERT and the printer's name who has actually printed the books. 4. that, to carry such printing and publishing work, Chhattisgarh Text Book Corporation purchase papers 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 le
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T Law under his own copyright. The content as given by Mr. J.K. Mittal is then given to Oakbridge Publishing Pvt. Ltd. (herein referred as publishing company) for the purpose of publishing who in consideration pays royalty to Mr. J.K. Mittal. After that, publishing company approaches Saurabh Printers Pvt. Ltd. For printing of such hand book, Saurabh Printers Pvt. Ltd. charges GST on invoice raised for providing service of printing to the publishing company. Afterwards, the publishing company publishes 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 28th June, 2017; 9. that, similarly, Chhattisgarh 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 pu
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018, which has been taken on record. The applicant has submitted its registration certificate as approved by Chhattisgarh Society Act, 1973 w.e.f. 11-8-2004. The applicant has submitted society registration certificate, copy of byelaws of society, copy of minutes of Board meeting, copy of sale invoices submitted to the State Government and copy of audit report of its C.A. (Charted Accountant) of 2016-17. The applicant narrated the task of Chhattisgarh Text Book Corporation as under :- Department 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 circula
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ly (i.e. question 1 and question 2) and have accordingly sought advance ruling only for the 1st two questions. 5. The legal position, Analysis and Discussion :- 5.1 The provisions for implementing the CGST Act anti CGGST Act, 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case:- Nature of work undertaken: – 5.2 The applicant M/s. Chhattisgarh Text Book Corporation, Pension Bada, Raipur (C.G.) is a society registered under Chhattisgarh Society Registration Act, 1973 w.e.f. 11-8-2004. It undertakes the works allotted by the Chhattisgarh Education Department. On the basis of documents submitted by the Chhattisgarh 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 work
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the field of Education as nominated by the Chhattisgarh Government. 5.3 The above members of the Council holds time to time Board meetings for rarifying the price of printed books of various academic classes. For price fixation of the books other expenses like paper and printing cost are also included apart from other miscellaneous expenses. For academic year 2018-19 to 2020-21 following other expenses are included in the price of books as approved in the Board Meeting No. 54 held on 31-8-2018: – Sr. No. Details of Item 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. Rs.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 p
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ncome Source Year 2013-14 Year 2014-15 Year 2015-16 Year 2016-17 Sale of books 13439.52 11827.00 13019.96 16966.64 Receipts from publishing work 379.20 – 31.44 235.62 Sale of waste paper 6.33 Other sales – 4.49 3.87 6.32 Total 13818.72 11831.49 13055.27 17214.91 Income from other sources 174.68 174.68 – 527.52 As per the above information the major source of income of Chhattisgarh Text Book Corporation is from sale of specified books. No income receipts are there from preparation of syllabus from State Government or Rajiv 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 accounts. In the Board meeting No. 41, dated 15-9-2015 for the year 2015-
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acking materials, transport and insurance is a composite supply and supply of goods is a principal supply; Thus from the above it gets clear that Chhattisgarh Text Book Corporation performs the works of publishing and distribution of books, consequent to getting it printed, as per Order No. F-10-12/2014/20, dated 13-4-2005 of School Education Department. The Chhattisgarh Text Book Corporation has been registered on 11-8-2004 as per Chhattisgarh Society Registration Act, 1973. It is the permanent job of Chhattisgarh Text Book Corporation 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.
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or 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. In the instant case the applicant, Chhattisgarh Text Book Corporation has submitted that it provides such paper to job workers (printers) for getting the content printed as provided by SCERT along with the patterns/ layout of the books which it specifically decides. 6. Therefore in view of 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. 2/201
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