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2019 (11) TMI 157 - AAR - GSTClassification of services - activity of printing of Question Paper books - whether activity of printing of Question Paper books is to be covered under HSN 4901 under the description Printed books, including Braille books in Serial Number 119 of Notification No. 2/2017 Central Tax (Rate) or under the sub-clause (vi) of clause (b) in serial Number 66 with SAC 9992 of Notification No. 12/2017 ? HELD THAT - In the instant case applicant is engaged in printing the content supplied by the recipient using their own physical inputs like paper, ink etc. Since there is involvement of rights in the question paper booklets printed and they cannot be supplied to anyone else and the confidentiality clauses of the contract are all involved, the same is to be treated as Composite supply with the supply of services being the principal supply - Therefore the supply made by the applicant shall qualify to be treated as a composite supply where the principal supply is the supply of service. Therefore their supply would not constitute a supply of goods. Such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. Whether their supply is covered under the SAC 9992 which is related to Education Services and hence covered under the Entry No. 66 of the Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017? - HELD THAT - There may be several services relating to the conduct of examination like invigilation, distribution of question papers, collection of answer sheets, assessment of answer sheets, printing of question papers etc. Therefore the ambit of the services relating to conduct of examination includes services of printing of question papers also. Therefore the services supplied by the applicant are covered under the scope of SI. 66 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017. The heading 9992 given in SI. No. 66 is only indicative and it does not impact the inclusion of the supply by the applicant from the entry at SI. No. 66.
Issues Involved:
Classification of printing activity under HSN code, applicability of SAC 9992 for educational services. Issue 1: Classification under HSN Code The applicant sought a ruling on whether printing of Question Paper books falls under HSN 4901 or SAC 9992. The applicant engages in printing content supplied by customers using their own physical inputs like paper and ink. The authority referred to CBIC Circular 11/11/2017-GST, clarifying that in cases where only content is supplied while physical inputs belong to the printer, the supply of printing is the principal supply, categorizing it as a service under heading 9989. The authority concluded that the applicant's supply is a composite supply with the principal supply being service, not goods. Issue 2: Applicability of SAC 9992 for Educational Services The applicant inquired whether their supply falls under SAC 9992 related to Education Services and covered under Entry No. 66 of Notification No. 12/2017 - Central Tax (Rate). The authority analyzed the definition of an educational institution and the scope of services relating to the conduct of examinations. It was noted that services like printing of question papers are part of the services relating to examination conduct. The authority interpreted the broad term "relating to" as encompassing various services connected to examination conduct, including printing of question papers. The authority clarified that the heading 9992 in the notification is indicative and does not impact the inclusion of the applicant's supply under Entry No. 66. Consequently, the ruling stated that the printing of question papers for educational institutions is a service under Heading 9989 and falls under Entry No. 66 of the said notification. Conclusion: The authority ruled that the printing of question papers by the applicant, using content supplied by educational institutions, constitutes a supply of services under Heading 9989. Furthermore, such services provided to educational institutes fall under Entry No. 66 of Notification No. 12/2017 - Central Tax (Rate) and the corresponding notification under KGST Act, 2017.
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