2022 (12) TMI 508 - AAR - GST

Advance Ruling - question raised without any further information or documents - Classification of supply - supply of goods or services - activity of printing and supply of question papers for Universities, Educational Boards and Educational Institutes - benefit under SI. No.66 of the Notification No.12/2017-Central Tax (Rate) as amended from time to time, and Noti. No.12/2017-State Tax (Rate) - exempt goods under SL. No. 119 of the exempted list at Nil rate of tax under CH 4901 i.e. Printed Books including braille books or not? HELD THAT - In spite of specific directions in writing and explained during the course of hearing at the time of admission as well as at the time of final hearing on 15/11/2022, no details are produced. The case is finally heard on 15/11/2022. No such details are produced before the Advanced Ruling Authority. The applicant wants to know the answer to certain question. The answer to the question can only be given after considering the underlying facts. If no records. bills. tender documents or correspondence. or agreement which govern the transaction or any document whatsoever related to transaction being undertaken or proposed to be undertaken is produced, it is not possible to comprehend the transaction. Hence. there is no other alternative. but to hold that the answer to the question cannot be given in the absence of proper details. Thus, none of the questions are answered.

Summary

Issues Involved:
1. Classification of the activity of printing and supply of question papers for Universities, Educational Boards, and Educational Institutes as supply of goods or services.
2. Applicability of the benefit under SI. No. 66 of Notification No. 12/2017-Central Tax (Rate) if the activity is treated as supply of services.
3. Classification and exemption status of the activity as supply of goods under SL. No. 119 of the exempted list at Nil rate of tax under CH 4901.

Detailed Analysis:

Issue 1: Classification as Supply of Goods or Services
The applicant, a proprietary firm, is engaged in the confidential printing of educational test papers for various educational boards, universities, and institutes. The applicant argued that the activity of printing and supply of test papers should be classified as a composite supply where the printing of the contents provided by the educational institutions is the principal supply. The applicant referred to Section 2(30) and Section 2(90) of the CGST Act, 2017, which define "Composite Supply" and "Principal Supply," respectively. The applicant also cited Circular No. 11/11/2017-GST, which clarifies that the supply of printing where only content is supplied by the recipient is considered a supply of service. Despite these arguments, the Authority for Advance Ruling (AAR) could not answer this question due to the absence of sufficient details and documentation from the applicant.

Issue 2: Applicability of SI. No. 66 of Notification No. 12/2017-Central Tax (Rate)
The applicant sought clarification on whether the activity, if treated as a supply of services, would be eligible for the benefit under SI. No. 66 of Notification No. 12/2017-Central Tax (Rate). This notification provides exemptions for services related to the conduct of examinations by educational institutions. The applicant argued that printing and supply of question papers is a service relating to the conduct of examinations and should thus be exempt under this notification. However, the AAR could not provide an answer due to the lack of detailed information and supporting documents from the applicant.

Issue 3: Classification as Exempted Goods under CH 4901
The applicant also questioned whether the activity, if classified as a supply of goods, could be treated as exempted goods under SL. No. 119 of the exempted list at Nil rate of tax under CH 4901, which covers printed books including braille books. The applicant contended that question papers do not fall under CH 4901 or CH 4911, as these headings predominantly deal with commercial printing. The applicant referred to a similar case decided by the Authority for Advance Ruling under GST, Gujarat, where the activity of printing question papers was classified as a supply of service. Despite these arguments, the AAR could not answer this question due to the absence of necessary details and documentation.

Conclusion:
The AAR could not provide answers to any of the questions raised by the applicant due to the lack of sufficient details and documentation. The applicant was directed to produce invoices, agreements, and other relevant documents to explain the exact nature of the work/activity being undertaken. However, the applicant failed to provide these details, making it impossible for the AAR to comprehend the transaction and provide a definitive ruling.