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2021 (11) TMI 887 - AAR - GSTExemption from GST levy - printing of pre-examination material items like Question Papers, OMR Sheets Optical Mark Reading , Answer Booklets with/without OMR, Practical Answer Booklets, Hall Tickets and other examination material specific to various educational boards/Universities - printing of post-examination material like Rank Cards, Marks Cards, Grade Sheets and Certificates specific to various educational boards/ Universities - activity of evaluation of OMRS and answer sheets, i.e., scanning and processing of results of examination - amounts to provision of service or not - HELD THAT - The Sl.No.66 of Notification No.12 of 2017-Central Tax (Rate), dt 28-06-2017 provides for exemption for services related to admission to or conduct of examination by such institution. Therefore if the applicant is providing any service in relation to conduct of examination by an educational institution as defined in the notification above then such services qualified to be exempt under Entry No.66 of Notification No.12/2017. Printing of Cheques - HELD THAT - The Notification No.2 of 2017 exempts supply of Cheques, lose or in book form at HSN code 4907. The applicant does not supply cheques to Bankers, it is the Bankers who are supplying cheques to their customers. The content of the cheque book is supplied by the banker and the banker is the person who owns usage rights to such intangible property. The applicant is printing cheques as per the directions of the Bankers and therefore in case of cheques where the applicant uses their own physical input, i.e., paper. The applicable rate of GST will be on different footing. In the case of the applicant he is providing services of printing and this activity of printing is not falling under item (i) of heading 9989 i.e., printing of newspapers, books (including Braille books), journals and periodicals and therefore is covered under Heading 9989 (ii) of Notification No.11/2017-Central Tax (Rate), dated 28-06-2017 as amended and is taxable at 9% CGST 9% SGST - In view of the clarification issued by CBIC dated 20.10.2017 it is clarified that where the applicant uses physical input, i.e., paper supplied by their client for the purpose of goods falling under chapter 48 or 49 of customs then the same will fall under Heading 9988 (ii)(a) and is taxable at 6% under CGST.
Issues Involved:
1. Tax exemption on pre-examination and post-examination printing services provided to educational institutions. 2. Tax exemption on the activity of evaluation of OMR sheets and processing of examination results. 3. Classification and applicable GST rate for the supply of printed cheque books. Issue-wise Detailed Analysis: A. Services Provided to Educational Institutions: The applicant sought clarification on whether the printing of pre-examination materials (like question papers, OMR sheets, answer booklets, hall tickets) and post-examination materials (like rank cards, marks cards, grade sheets, certificates) provided to educational boards/universities amounts to provision of service and is exempt from GST. The Advance Ruling Authority referred to Circular No. 151/07/2021-GST and Notification No. 12/2017-Central Tax (Rate), which exempts services provided by or to an educational institution relating to admission or conduct of examination. Educational institutions are defined under clause 2(y) of the notification. It was clarified that services related to the conduct of examination, such as printing of examination materials, are exempt under Entry No. 66 of Notification No. 12/2017 if supplied to educational institutions as defined. B. Printing of Cheques: The applicant also sought clarification on the classification and applicable GST rate for the supply of cheque books printed as per the specifications given by banks. The authority referred to Notification No. 2 of 2017, which exempts the supply of cheques under HSN code 4907. However, it was clarified that the applicant is providing a printing service where the content is supplied by the banker, and the physical inputs (paper) are provided by the applicant. This scenario falls under Heading 9989 (ii) of Notification No. 11/2017-Central Tax (Rate), making it taxable at 9% CGST and 9% SGST. If the paper is supplied by the client, it falls under Heading 9988 (ii)(a) and is taxable at 6% under CGST and SGST each. Rulings Issued: 1. Exam-related Printing Activity: - Pre-examination Materials: Printing of question papers, OMR sheets, answer booklets, hall tickets, and other examination materials specific to educational boards/universities is exempt from GST if supplied to educational institutions as defined in Notification No. 12/2017. - Post-examination Materials: Printing of rank cards, marks cards, grade sheets, and certificates specific to educational boards/universities is also exempt from GST under the same conditions. - Evaluation Services: The activity of evaluation of OMR sheets and processing of examination results falls under the category of service and is exempt from GST if provided to educational institutions. 2. Printing of Cheques: - Content Supplied by Banker: If the banker supplies the content and the applicant uses their own paper, the service falls under Heading 9989 (ii) and is taxable at 9% CGST and 9% SGST. - Paper Supplied by Client: If the paper is supplied by the client, the service falls under Heading 9988 (ii)(a) and is taxable at 6% under CGST and SGST each. The application by M/s. Hitech Print Systems Limited was disposed of accordingly.
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