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2019 (2) TMI 1008 - AAR - GSTRate 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 of District education officer etc. Held that - The State Government has constituted the Chhattisgarh Text 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. 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.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 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 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. 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 28-6-2017.
Issues Involved:
1. Classification of the supply of books by the Chhattisgarh Text Book Corporation as supply of goods or services. 2. Determination of the applicable tax rate for the supply of books by the Chhattisgarh Text Book Corporation. Issue-wise Detailed Analysis: 1. Classification of the Supply of Books: The primary issue is whether the supply of books by the Chhattisgarh Text Book Corporation (CGTBC) constitutes a supply of goods or services. The applicant, CGTBC, is a society registered under the Chhattisgarh Society Registration Act, 1973, and undertakes the task of publishing and distributing books as per the instructions of the School Education Department, Chhattisgarh. The books are printed based on the syllabus decided by the State Council of Educational Research and Training (SCERT). CGTBC argued that its activities, which include purchasing paper, printing content provided by SCERT, and distributing the books, constitute the supply of goods. CGTBC maintains ownership of the books throughout the process, bearing any losses incurred from unsold or damaged books. The books are distributed to various educational agencies, including the School Education Department and Rajiv Gandhi Shiksha Mission. The ruling authority examined the nature of the supply and concluded that the supply of books by CGTBC is a "composite supply" as defined under Section 2(30) of the GST Act. The principal supply in this case is the supply of printed books. Consequently, the activity of CGTBC is classified as a supply of goods. 2. Determination of the Applicable Tax Rate: The second issue concerns the applicable tax rate for the supply of books by CGTBC. The applicant sought clarification on whether the books supplied fall under HSN Code 4901, which covers "printed books, including Braille books," and attracts a zero tax rate. The ruling authority considered the submissions and evidence provided by CGTBC, including the process of printing and distributing books as per the syllabus approved by SCERT. The authority noted that the supply of printed books by CGTBC is a principal supply of goods. Therefore, the supply of these books merits consideration under HSN code 4901. The ruling authority concluded that the supply of specified printed educational books by CGTBC, as per the instructions of the School Education Department and other educational agencies, falls under HSN code 4901 and attracts a zero tax rate under Notification No. 2/2017-State Tax (Rate) No. F-10-43/2017CT/V/70, dated 28-6-2017. Order: The ruling authority answered the applicant's queries by confirming that the supply of specified printed educational books by CGTBC, as per the instructions of the School Education Department and other educational agencies, constitutes a supply of goods under HSN code 4901 and attracts a zero tax rate.
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