Mattress Price Hike Due to Tax Increase Not Profiteering, Says Section 171 of CGST Act 2017.
Case-Laws
GST
Profiteering – supply of Peps Spring Koil Bornell Normal Maroon 75x60x6″ Mattress –
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INDOFIL INDUSTRIES LTD Versus STATE OF GUJARAT
GST
2019 (2) TMI 1151 – GUJARAT HIGH COURT – 2019 (30) G. S. T. L. J53 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 26-12-2018
R/SPECIAL CIVIL APPLICATION NO. 20559 of 2018
GST
MR HARSHA DEVANI ANXD DR A. P. THAKER, JJ.
For The Respondent (s) : UCHIT N SHETH (7336)
For The Respondent (s) : ADVANCE COPY SERVED TO GOVERNMENT PLEADER/PP (99)
ORAL ORDER
(PER : HONOURABLE MS.JUSTICE HARSHA DEVANI)
1. Mr. Uchit Sheth, learned advocate for the petitioners invited the attention of the court to the provisions of section 7 of the Integrated Goods and Services Tax Act, 2017, to submit that by virtue of sub-section (5) thereof, supply of goods or services or both to or by a Special E
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FEDERATION OF GUJARAT WEAVERS WELFARE ASSOCIATION Versus UNION OF INDIA
GST
2019 (1) TMI 358 – GUJARAT HIGH COURT – 2019 (22) G. S. T. L. 9 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 26-12-2018
R/SPECIAL CIVIL APPLICATION NO. 20626 of 2018
GST
MS HARSHA DEVANI AND DR A. P. THAKER, JJ.
For The PETITIONER (s) : MR DHAVAL SHAH (2354)
ORAL ORDER
(PER : HONOURABLE MS. JUSTICE HARSHA DEVANI)
Mr. Prakash Shah learned advocate with Mr. Dhaval Shah, learned advocate for the petitioner invited the attention of the Court to sub-section (3) of Section 54 of the Central Goods and Services Tax Act, 2017, to submit that the clause (ii) thereof provides that where the credit has accumulated on account of rate of tax on inputs being
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It was submitted that at the same time, vide clause (ii) of the proviso it has been provided that in respect of said goods, the accumulated input tax credit lying unutilized in balance, after payment of tax for and upto the month of July, 2018 on the inward supplies received up to the 31st day of July, 2018 shall lapse. It was submitted that sub-section (3) of section 54 empowers the Government to notify the goods in respect of which the proviso to subsection (3) of section 54 would not apply. However, the said section does not in any manner empower the Government to provide for lapsing of the input tax credit. It was submitted that the respondents are therefore not granting refund to the petitioner unless the petitioner reverses the input
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M/s M. Junction Services Ltd. Versus Commr. of CGST & Central Excise, Kolkata North
Service Tax
2019 (1) TMI 66 – CESTAT KOLKATA – TMI
CESTAT KOLKATA – AT
Dated:- 26-12-2018
S.T. Appeal No.78641/18 – FO/A/77158/2018
Service Tax
SHRI P. K. CHOUDHARY, JUDICIAL MEMBER
Shri Nanda Kishore Kothari & Shri Akshay Goenka, both C.As. for the Appellant (s)
Shri S. Mukhopadhyay, Supdt.(A.R.) for the Revenue
ORDER
Per Shri P.K. Choudhary :
The present appeal is listed for admission today. After hearing both sides and despite the amount involved in this case being below the threshold of Rs. 2.00 lakhs, the appellant intends to contest the issue on merits, which is admitted.
3. With the consent of both sides, the appeal itse
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amount of Rs. 1,72,331/- as service tax (including cess) already paid on 30.03.2012, should not be appropriated.
(ii) An amount of Rs. 67,253/- calculated as interest should not be demanded and recovered from them in terms of Section 75 of the said Act and the said amount of Rs. 67,253/- already paid, should not be appropriated.
(iii) Penalty should not be imposed upon them in terms of Section 78 of the said Act for violation of the above mentioned provisions of the said Act and the said Rules.
(iv) Penalty should not be imposed upon them in terms of Section 77 of the said Act for non-obtaining Service Tax Registration and non-submission of ST-3 Returns for material period.
5. The Adjudicating Authority confirmed the demand of Service T
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vice tax along with interest had already been paid by the assessee, for which, separate show-cause notice was issued, which culminated into a separate proceeding altogether. Subsequently, present show-cause notice has been issued for demanding service tax on the amount of Tax Deducted at Source (TDS), which was inadvertently left out by the assessee. On being pointed out, they immediately paid the amount of Rs. 1,72,331/- along with interest amounting to Rs. 67,253/- and intimated to the jurisdictional authorities.
8. I find that there is no material available on record to establish the allegation of suppression of facts, mis-declaration etc. with an intent to evade payment of service tax. On the other hand, the appellant assessee immediat
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Exemption of Igst
Query (Issue) Started By: – Piyush Kumar Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Customs – Exim – SEZ
Got 4 Replies
Customs
Hello sir
If I export an item to Nepal which I purchased locally from Bihar paying 6+6 cgst and igst…will the sales will be applicable for exemption from Igst. By
Giving letter of undertaking And how I will claim my Gst paid for purchase?
Reply By KASTURI SETHI:
The Reply:
Yes. You can export and claim refund of GST paid from t
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Taxability of Milk Chilling & Storage Charges
Query (Issue) Started By: – sanjeev agrawal Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 3 Replies
GST
As per Notification No. 12/2017 dated 28 June, 2017
Agriculture produce means " Any produce out of cultivation of plants and rearing of all life forms of animals except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done of such processing is done as is usually done by a cultivator or producer which does not alter its essential charateristics but makes it marketable for primary market."
As per S. no. 54 Any services relating to cultivation of plants and re
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e) dated 28.6.17 as amended:-
25.
0401
Fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk
26.
0403
Curd; Lassi; Butter milk
27.
0406
Chena or paneer, other than put up in unit containers and bearing a registered brand name;
Reply By KASTURI SETHI:
The Reply:
Chilling does not amount to manufacture as it does not change the character of the goods. It avoids to spoiling milk. CESTAT Delhi and Jaipur have decided the issue in favour of assessee but the department has filed civil writ petition in the Supreme Court. In my view, it conforms to the definition of 'agriculture produce'. Howeve
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admitted the Diary No. 10936 of 2017 filed by Commissioner of Central Excise, Jaipur against the CESTAT Final Order No. 51354/2016, dated 28-4-2016 as reported in 2018 (10) G.S.T.L. 66 (Tri.-Del.) = 2016 (4) TMI 1144 – CESTAT NEW DELHI (Acclaim Foods Private Limited v. Commissioner).
The Appellate Tribunal in its impugned order had held that the activity of chilling milk to required temperature, for and on behalf of customer, in its plant by assessee, for carrying in insulated tankers for further processing at customer's plant, as not covered under Business Auxiliary Service following decision in 2015 (37) S.T.R. 660 (Tri. – Del.) = 2014 (6) TMI 493 – CESTAT NEW DELHI SHARMA ICE FACTORY Versus COMMISSIONER OF CENTRAL EXCISE, JAIPUR-I. The
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Indian Supplier to Duty-Free Shop Not 'Export' Under GST; Rule 96-A Bond/LUT Required for Duty-Free Supplies.
Case-Laws
GST
Exemption from GST – duty free shop – As the supply to a DFS by an Indian supplier is not to 'a place outside India', therefore, such supplies do not qualify as 'export of goods' under GST. Consequently, such supplies cannot be made without payment of duty by furnishing a bond/letter of undertaking (LUT) under rule 96-A of the CGST Rules, 2017.
TMI Updates – Hi
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Court Allows Interrogation of Custodial Accused in GST Evasion Case Involving Fake Invoices; Statements to be Recorded.
Case-Laws
GST
Permission to interrogate and record statement of accused
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Bail Canceled for Accused in Fake Invoice Scam Involving Bogus Companies and Dummy Proprietors.
Case-Laws
GST
Cancellation of Bail – opening bogus companies in the name of dummy proprietors a
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GST and Import Duty Levied on Goods from Duty-Free Shops Before Immigration Clearance; Customs Action Upheld.
Case-Laws
GST
Levy of GST / import duty goods purchase from Duty free shops – sho
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Cars for handicapped
Query (Issue) Started By: – Tarun Agarwal Dated:- 25-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 1 Reply
GST
Dear sir iiam a handicapped person with below knee amputation , as per GOVT norms there is some concession in GST for handicapped and they have to get a certificate from heavy industries to avail that , there is a form where doctor in which Doctor and CMO of the Hospital certified and on the basis of that ministry issues the cert
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Interest Calculation u/s 50 of CGST Act
Query (Issue) Started By: – PANKAJ KUMAR Dated:- 25-12-2018 Last Reply Date:- 27-12-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Hi..
We had liability for the month of July 2018 ₹ 50 Lakh and CENVAT of ₹ 45 Lakh, net liability comes to ₹ 5 lakh. my query is on which amount we have to pay interest u/s 50 of CGST act.
We have to pay interest on ₹ 50 Lakh as liability still not set off at the portal?
Reply By KASTURI SETHI:
The Reply:
You are required to pay interest on RS.50 lakhs as Liability was not set off and not any amount was credited into Govt . Account.
Reply By PAWAN KUMAR:
The Reply:
rightly explained by kasturi sir. on total amount of rs. 50 l
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Ancillary supplies to Health Care Services
By: – CA Akash Phophalia
Goods and Services Tax – GST
Dated:- 25-12-2018
Whether medicines, consumables and implants used in the course of providing health care services are taxable?
Introduction
Health care services always enjoy a special place in the revenue laws. Generally, health care services provided to treat the deficiency and for diagnosis of any disease is exempted form payment of tax. In this article author aims to discuss the implication about the taxability of the ancillary supplies made to patients during the course of provision of health care services.
Meaning of Health Care Services
Health care services means any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic
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nt. The out-patients are those who visit the hospital. for routine check-ups or clinical visits.
The medicines, consumables and implants are generally used in the course of providing services to the patients admitted for diagnosis or treatment in the hospital or clinical establishment is naturally bundled in the ordinary course of business. Now the moot question arises whether the said medicines, consumables and implants used for providing services to the patients admitted are taxable as an independent supply or whether the supply of medicines, consumables and implants alongwith health care services shall be classified as supply of health care services or supply of medicines.
Naturally bundled services
The concept of naturally bundled services was explained in the Education Guide issued by the C.B.E. & C. in the year 2012 (the Education Guide) and the same is borrowed in explaining the meaning of naturally bundled services under GST law vide CBEC Flyer No 4 dated 1-1-2018. The rele
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ertain services supplied during provision of health care services by hospitals. The relevant extract is reproduced here for quick reference:-
* Retention Money – Hospitals charge the patients, say, ₹ 10000/- and pay to the consultants/technicians only ₹ 7500/- and keep the balance for providing ancillary services which include nursing care, infrastructure facilities, paramedic care, emergency services, checking of temperature, weight, blood pressure, etc. Will GST be applicable on such money retained by the hospitals?
Healthcare services have been defined to mean any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognized system of medicines in India [para 2(zg) of notification No. 12/2017-C.T. (Rate)]. Therefore, hospitals also provide healthcare services. The entire amount charged by them from the patients including the retention money and the fee/payments made to the doctors etc., is towards the healt
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atients are admitted to the hospital when they are extremely ill or have severe physical trauma. As far as an in-patients are concerned, hospital is expected to provided lodging, care, medicine and food as part of treatment under supervision till discharge from hospital. The nature of the various services in a bundle of services will help in determining whether the services are bundled in the course of business. If the nature of services is such that one of the services is the, main services and other services combined with such services are in the nature of incidental or ancillary services which help in better utility of main services then the various element of the services are said to be naturally bundled in course of business. Hence the medicines, implants, room provided on rent, dietary food advised by nutritionists etc. used in course of providing. Health care services to the patients admitted for diagnosis or treatment in the hospitals or clinical establishment is undoubtedly na
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ves no control over his continuous treatment. As far as an outpatient is concerned there is no difference for procuring medicine either from the dispensing outlet within the hospital or from outside the hospital. In both places medicines dispensed based on prescription. Hence there is no privilege for the hospitals that are dispensing medicines to outpatients. Therefore pharmacy run by hospital dispensing medicine to outpatient or bystanders or others can be treated as individual supply of medicine not covered under the ambit of heath care services. Hence such supply of medicine and allied goods are taxable.
Conclusion
In view of the above analysis, legal canons and decision by AAR in 2018 (18) GSTL 831 (AAR-GST) IN RE: KIMS HEALTH CARE MANAGEMENT LTD [ 2018 (11) TMI 281 – AUTHORITY FOR ADVANCE RULINGS, KERALA ], the conclusions can be drawn as under:-
Situation
Kind of service
Taxability
Remarks
I
Out-patient services
(Diagnosis or Treatment)
Not-taxable
Such service shall
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GST Registration
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 24-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 2 Replies
GST
XYZ registered with GST in Maharashtra, have taken service contracts of machine maintenance, under which they depute their service team on sites at different states. At the customers site, the customer is providing accommodation facility in their guest house since the service contract is for a longer duration. 1) Is XYZ requi
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ITC OF RCM PAID ON GTA SERVICES AVILED ON NON TAXABLE SUPPLY
Query (Issue) Started By: – DHARMENDRA SONI Dated:- 24-12-2018 Last Reply Date:- 26-12-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir ,
We are supplier of Taxable & Exempt Product . We are paying RCM on GTA services availed for inputs of both type of supplies. Kindly suggest us can we take ITC of RCM paid for both types of supplies.
Reply By KASTURI SETHI:
The Reply:
Under RCM, first you will pay in cash.
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GST INPUT ON SALE PROMOTION
Query (Issue) Started By: – neeta gupta Dated:- 24-12-2018 Last Reply Date:- 25-12-2018 Goods and Services Tax – GST
Got 2 Replies
GST
If we buy t-shirts, key chains etc. and send this for free distribution along with supply for sale promotion. Can we get the input GST on purchase?
Also distribute some gifts under scheme, Can we use GST input?
Reply By KASTURI SETHI:
The Reply:
If such promotional scheme is without any written contract, ITC will not b
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Switchover of GST registration from Compositon to regular
Query (Issue) Started By: – rohit khan Dated:- 24-12-2018 Last Reply Date:- 25-12-2018 Goods and Services Tax – GST
Got 2 Replies
GST
If a business is Registered under Composition Scheme of GST and crosses Limit of 1.5 crores within the financial year, Business registration has to change to Regular. and the business has to submit GSTR-4 for the current quarter and GSTR-1 also from the month in which he crossed the limit. But
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GST Rate Set at 5% for Retrofitting Twin Pipe Air Brake Systems on Railway Wagons as Composite Supply.
Case-Laws
GST
The Applicant’s contract for retro-fitment of Twin Pipe Air Brake System
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Agricultural Soil Testing Minilab Reagents Classified Under GST Tariff Heading 9027, Not Eligible for Exemption Under 8201.
Case-Laws
GST
Classification of goods – rate of tax – Agricultural
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Renting workwear under Schedule II, entry 5(f) of CGST Act 2017 is a mixed supply with services like washing.
Case-Laws
GST
The activities/transactions of renting of workwear qualify as “transfer of right to use” of goods in terms of entry 5 (f) of Schedule II of Central Goods and Services Act, 2017. – Renting of work wear along with other services such as transportation, weekly washing etc. is mixed supply.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alert
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Limestone slabs classified under Chapter 68 of Customs Tariff Act, 1975, not under Chapter 25.
Case-Laws
GST
Classification of goods – Polished / Processed limestone slabs – The commodity “
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Governor of Himachal Pradesh, appoint Divisional Commissioner, Shimla as Commissioner (Appeals) for carrying out the purposes of section 107 of HPGST Act 2017
No. EXN-B(1)-3/2018 Dated:- 24-12-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
GOVERNMENT OF HIMACHAL PRADESH
EXCISE AND TAXATION DEPARTMENT
NOTIFICATION
Shimla-2, the 24th December, 2018
No. EXN-B(1)-3/2018.-In exercise of the powers conferred by section 3 of the Himachal Pradesh G
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Appoint Sh. Sanjay Bhardwaj, Additional Commissioner of State Taxes and Excise (Grade-I) as Additional Commissioner (Appeals) for carrying out the purposes of section 107 of Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017)
No. EXN-B(1)-3/2018. Dated:- 24-12-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
GOVERNMENT OF HIMACHAL PRADESH
EXCISE AND TAXATION DEPARTMENT
NOTIFICATION
Shimla-2, the 24th December, 2018
No. EXN-B(1)-3/2
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IN RE: ASHOK CHATURVEDI
GST
2019 (2) TMI 1008 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – 2019 (21) G. S. T. L. 211 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – AAR
Dated:- 24-12-2018
STC/AAR/08/2018-Raipur
GST
S/Shri S.K. Buxy, Member (State Tax) and Rajesh Kumar Singh, Member (Central Tax)
ORDER
Proceedings: The applicant M/s. Shri Ashok Chaturvedi, General Manager, Chhattisgarh Text Book Corporation, Pension Bada, Raipur, Chhattisgarh, holding GSTIN 22AAAJC0421F1Z8 has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 requesting advance ruling as regards :-
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 T
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Book Corporation is a registered society under Chhattisgarh Society Registration Act, 1973 which is run by Government and Non-Government officers. Chhattisgarh Text Book Corporation has been provided with the work of publishing and distribution of books for Chhattisgarh State by the Order No. F 10-12/2004/20, dated 13-4-2005 of School Education Department, Chhattisgarh. The aims of Chhattisgarh Text Book Corporation as per the byelaws of Government society is as under: –
1. To improve and promote all types of education especially primary, middle, high school and higher secondary education and to complete all related works.
2. To develop, 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 distrib
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he details in respect of members of the TBC and the member includes the Minister of Education Chhattisgarh Government, Secretary to Education Department Chhattisgarh (IAS) etc.
2. that, Department of Education gives instructions to Chhattisgarh Text Book Corporation to publish and provide books in various governmental schools and further the Text book corporation is even formed to publish the books. Further, while giving the order, the cost of each book is also decided by the Board members in Board meeting which is headed by the Minister (Education) who is also Chairman of CG Text Book Corporation.
3. that, SCERT which is a specific wing of the 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 Owne
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e 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 to supply of goods and thus falls under the HSN Code [4901] i.e. printed books, wherein the rate of tax is NIL, meaning therein that the supply of printed books is not subject to tax.
8. that, therefore at the cost of repetition, Chhattisgarh Text Book Corporation submits that the whole process of CGTBC can be understood through an example where a very renowned author Mr. J.K. Mittal gets its Hand Book of GST published:
'Mr. J.K. Mittal is a well-known author who wrote the Hand Book on GST 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
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ion, 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 questions only (i.e. question 1 and question 2). Thus the applicant has sought advance ruling only for the 1st two questions.
4. Personal Hearing :-
In keeping with the established principles of natural justice, personal hearing in the matter was extended to the authorized representative of the applicant and accordingly, Mr. J.K. Gupta (CA) and Miss. Deepti Agrawal, Senior Manager (Finance) appeared before us for hearing on 29-11-2018 and reiterated their contention. They also furnished a written submission dated 29-11-2018, 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 Gover
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d 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 Corporation. In case of loss, damage of book, or in case the content provided by the SCERT is incorrect, only Chhattisgarh Text Book Corporation is responsible for such incurred losses.
Thus, in above context, Chhattisgarh Text Book Corporation, the applicant 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 questions only (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:
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ot below the rank of Deputy Secretary.
(iv) Director Public Education, Chhattisgarh.
(v) Chairman, Chhattisgarh Board of Secondary Education.
(vi) Controller, Government Press, Chhattisgarh.
(vii) Director, State Council of Education, Research and Training.
(viii) Commissioner/ Director, Department of Welfare of Schedule Caste, Schedule Tribe and Other Backward classes.
(ix) A representative as nominated by NCERT.
(x) A Principal nominated by Chhattisgarh School Education Department.
(xi) Three Teachers/ Head Masters/ DIET Principals as nominated by Chhattisgarh School Education Department having knowledge of primary/ middle/higher education.
(xii) Two renowned people in 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 f
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g 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 Department and Rajiv Gandhi Shiksha Mission, as per their specification. Chhattisgarh Text Book Corporation has also stated that the ownership of the books supplied to School Education Department and Rajiv Gandhi Shiksha Mission remains with the applicant only, and it has submitted the following two points to bring home their above contention: –
(i) The annual income of Chhattisgarh Text Book Corporation as per their C.A. audit report has been shown as under :-
Amount in Lacs
Income 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
1
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Book 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(30) of GST Act defines composite supply as under :-
“Composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
Illustration: Where goods are packed and transported with insurance, the supply of goods, packing 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 o
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pply 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. Here from the details put forth by the applicant before us, we observe 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
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In Re: M/s. Chhattisgarh Text Book Corporation
GST
2019 (2) TMI 65 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – TMI
AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – AAR
Dated:- 24-12-2018
STC/AAR/08/2018
GST
SHRI S.K. BUXY AND SHRI RAJESH KUMAR SINGH, MEMBER
PROCEEDINGS
[U/s 98 of the Chhattisgarh Goods & Services Tax Act, 2017 (hereinafter referred to as CGGST Act, 2017)]
No. STC/AAR/08/2018
Raipur, Dated .24/12/2018
The applicant M/s. Shri Ashok Chaturvedi, General Manager, Chhattisgarh Text Book Corporation, Pension dada, Raipur Chhattisgarh, holding GSTIN 22AAAJC0421F1Z8 has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 requesting advance ruling as regards :-
1. Whether the bocks 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 a
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ting 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 TEXT BOOK CORPORATION has been provided with the work of publishing and distribution of books for Chhattisgarh State by the order No. F-10-12/2004/20 dated 13-04-2005 of School Education Department, Chhattisgarh. The aims of CHHATTISGARH TEXT BOOK CORPORATION as per the byelaws of Government society is as under:-
1. To improve and promote all types of education especially primary, middle, high school and higher secondary education and to complete all related works.
2. To develop, 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
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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) etc.
2. that, Department of Education gives instructions to CHHATTISGARH TEXT BOOK CORPORATION to publish and provide books in various governmental schools and further the Text book corporation is even formed to publish the books. Further, while giving the order, the cost of each book ls also decided by the Board members in Board meeting which is headed by the Minister (Education) who is also Chairman of CG Text Book Corporation.
3. that, SCERT which is a specific wing of the 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 ls owned by the SCERT. Further, in every book bei
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n 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 to supply of goods and thus falls under the HSN Code [4901] i.e. printed books' wherein the rate of tax is NIL, meaning therein that the supply of printed books is not subject to tax.
8. that, therefore at the cost of repetition, CHHATTISGARH TEXT BOOK CORPORATION submits that the whole process of CGTBC can be understood through an example where a very renowned author Mr. J.K. Mittal gets its Hand Book of GST published:
'Mr. J.K. Mittal is a well-known author who wrote the Hand Book on GST 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
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ontext, 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. question 1 and question 2). Thus the applicant has sought advance ruling only for the 1st two questions.
4. Personal Hearing:-
In keeping with the established principles of natural justice, personal hearing in the matter was extended to the authorized representative of the applicant and accordingly, Mr. J.K. Gupta (CA) and Miss. Deepti Agrawal, Senior Manager (Finance) appeared before us for hearing on 29.11.2018 and reiterated their contention. They also furnished a written submission dated 29.11.2018, which has been taken on record.
The applicant has submitted its registration certificate as approved by Chhattisgarh Society Act, 1973 w.e.f. 11-08-2004. The applicant has submitted society registration certificate, cop
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ooks 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 CORPORATION. In case of loss, damage of book, or in case the content provided by the SCERT is incorrect, only CHHATTISGARH TEXT BOOK CORPORATION is responsible for such incurred losses.
Thus, in above context/ CHHATTISGARH TEXT BOOK CORPORATION, the applicant 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 I and question 2 only, therefore, their main concern is for the 1st two questions only (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 and CGG
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ucation 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, Chhattisgarh.
vii. Director, State Council of Education, Research and Training.
viii. Commissioner/Director, Department of Welfare of Schedule Caste, Schedule Tribe and Other Backward classes.
ix. A representative as nominated by NCERT.
x. A Principal nominated by Chhattisgarh School Education Department.
xi. Three Teachers/Head Masters/DIET Principals as nominated Chhattisgarh School Education Department having knowledge primary/middle/higher education.
xii. Two renowned people in 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
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s 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 Department and Rajiv Gandhi Shiksha Mission, as per their specification. CHHATTISGARH TEXT BOOK CORPORATION has also stated that the ownership of the books supplied to School Education Department and Rajiv Gandhi Shiksha Mission remains with the applicant only, and it has submitted the following two points to bring home their above contention.
i. The annual income of CHIHATTISGARH TEXT BOOK CORPORATION as per their C.A. audit report has been shown as under.-
Amount in Lacs
Income 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
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e 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(30) of GST Act defines composite supply as under:-
“Composite supply” means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply;
Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;
Thus from the above it gets clear t
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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 to be noted that in case of composite supplies, taxability is determined by the principal supply. Here from the details put forth by the applicant before us, we observe 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
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