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2023 (9) TMI 1232 - AAR - GSTExempted supply or not - composite supply - printing of Pre-Examination items like question papers, OMR sheets (optical Mark Reading), answer booklets for conducting of an examination by the educational boards - printing of Post-Examination items like marks card, grade card, certificates to educational boards (up to higher secondary) after scanning of OMR Sheets and processing of data in relation to conduct of an examination - scanning and processing of results of examinations - applicability of Entry 66 of Notification No. 12/2017-CGST (Rate), dated 28-06-2017 as amended. Whether the supply of test papers/question papers by the applicant for educational institutes should be treated as supply of goods or supply of service as the applicant makes the supply using the paper and ink owned by him? - HELD THAT - The supply made by the applicant cannot be classified as selling of question papers to the educational institutes as the content to be printed on them is given by the latter to the applicant. The supply of Printed Question Papers cannot be in toto categorised as supply of goods to the educational institutes, as this is not a case where readymade printed material is bought by recipient who does not own the content in the material to be bought, but it is a composite supply of providing printing services on the papers owned by him. This composite supply involves both supply of printing services and supply of the paper owned by him on which the printing is done as per the content given by the educational institutes - Printing of test papers/question papers is the Principal supply of the composite supply, made by the applicant, which involves goods and services i.e. papers and printing services. Printing of test papers/question papers is the Principal supply of the composite supply and HSN classification of the entire supply should be done based on Principal supply. Supply of test papers/question papers would constitute supply of service falling under heading 9989 of the scheme of classification of services as the usage rights of the manuscript material of Question Papers/test papers (intangible inputs) are owned by the Educational Institutes and the physical inputs used for printing the same belong to the applicant. Applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended vide clause (o) of Notification No. 2/2018-Central Tax(Rate) dated 25.01.2018, read with Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT - As per Sr. No. 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate), as amended, services provided to an educational institution, by way of services relating to admission to, or conduct of examination by, such institution is exempted from payment of Goods and Services Tax. It is to be noted that exemption is given only to services and not to goods in this Notification and the principal supply of the composite supply made by the applicant is printing services. The service of printing of question papers, if supplied by the applicant to other than educational institutions would attract Goods and service tax at rate as specified under Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), as amended, at rate of 12%. The applicant claims that he supplies Printing of test papers/question papers, OMR sheets, Certificates, Marks Memo, MICR cheque books etc. using his own paper and ink to educational institutions. This is a composite supply, of which Printing services is the principal supply, as defined under Section 2(90) of the Central Goods and Services Tax Act, which makes HSN classification of the supply to be done on printing services which falls under heading 9989. As it is a service done to educational institutions the exemption under S. No. 66 (b) (iv) of Notification No. 12/2017-CT(R) can be availed by him as the said Notification details the services provided to educational institution which are exempt. The same is clarified by Circular No. 151/07/2021-GST CBIC- 190354/36/2021 dated 17.06.2021 while dealing with the issue of supply of various services by National and State Boards.
Issues Involved:
1. Exemption of GST on printing of pre-examination items. 2. Exemption of GST on printing of post-examination items. 3. Exemption of GST on scanning and processing of examination results. 4. Applicability of exemption under entry no. 66 of Notification No. 12/2017-Central Tax (Rates). Summary: Issue 1: Exemption of GST on printing of pre-examination items The applicant sought clarification on whether printing services for pre-examination items such as OMR sheets, answer sheets, and marks cards supplied to educational institutions are exempt from GST. The authority concluded that these services are exempt under serial number 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate), as they are essential for the conduct of examinations by educational institutions. Issue 2: Exemption of GST on printing of post-examination items The applicant queried if printing services for post-examination items like marks cards, grade cards, and certificates supplied to educational boards up to higher secondary level are exempt from GST. The authority ruled that these services are also exempt under the same notification, as they are integral to the examination process. Issue 3: Exemption of GST on scanning and processing of examination results The applicant asked whether scanning and processing of examination results are exempt from GST. The authority confirmed that these services are exempt under serial number 66(b)(iv) of Notification No. 12/2017-Central Tax (Rate), as they relate to the conduct of examinations by educational institutions. Issue 4: Applicability of exemption under entry no. 66 of Notification No. 12/2017-Central Tax (Rates) The applicant sought to confirm entitlement to exemptions for the aforementioned services under entry no. 66 of the notification. The authority affirmed that the applicant is entitled to avail the exemption for services related to the conduct of examinations, as outlined in the notification and clarified by Circular No. 151/07/2021-GST. Conclusion: The authority ruled that the supply of printing services for pre-examination and post-examination items, as well as scanning and processing of examination results, are exempt from GST under entry no. 66 of Notification No. 12/2017-Central Tax (Rate), provided they are supplied to educational institutions.
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