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2024 (2) TMI 644 - AAR - GSTClassification of supply - supply of goods or supply of services - activity of printing of Question Paper, OMR Sheets, Answer Sheets, Marks sheets, Certificate, and other documents related/ required by the Board as well as Universities on behalf educational Institutions - benefit of serial no 66 of the notification 12/2017-CTR dated 28.06.2017 or serial no 119 of exempted list nil - classifiable under chapter heading / sub-heading of 49011010 of printed matters? - covered by schedule I at serial no 201 liable to tax at 2.5 CGST under Broachers, leaflets and similar printed matter whether or not is single sheets or not. HELD THAT - It is seen from the records that the applicant is engaged in the activity of Security printing/confidential printing of Examination papers, Answer Sheets OMR Sheets, Mark sheets and Certificates for supply to educational institutions like State Education Board and Universities - As per the circular No 11/ 11/2017 GST dated 20.10.2017, if the activity of printing gives essential character to the printed product, it will be supply of service. If the usage of the product gives essential character, it will be supply of goods. In the case of the applicant, the activity of printing gives essential character to the printed product, hence it can be classified as supply of service. There is no restriction of upto higher secondary level' in respect of exemption covered in entry 66(b)(iv) of the Notification no 12/2017-CT (Rate) dated 28.06.2017 - Hence services relating to activity of printing of Question Paper, OMR Sheets, Answer Sheets, Marks sheets, Certificate, and other documents related/ required by an educational institution, within the meaning of educational institution as defined under Notification 12/2017-CT (Rate) pertaining to admission to, or conduct of examination by educational institutions is exempted from GST vide Notification 12/2012-CT (Rate). Whether the activity of printing of the following terms of stationery on behalf of Educational Board and Universities constitute a supply of services? - whether the same would be covered serial no 66(heading 9992) of Notification no 12/2017-Central tax (Rate) as amended and subject to nil rate of tax? - HELD THAT - All the above mentioned articles are covered within the ambit of services relating to admission to, or conduct of examination by, such institution. Hence all the services relating to admission to or conduct of examination, by an educational institution, within the meaning of educational institution as defined under Notification 12/2017-CT (Rate) will qualify for exemption as provided vide Sr no 66 of Notification 12/2017-CT (Rate).
Issues Involved:
1. Classification of the activity of printing as supply of goods or services. 2. Applicability of exemption under Notification 12/2017-CT (Rate) for services related to the conduct of examinations by educational institutions. 3. Determination of tax liability if classified as supply of services or goods. Summary: Issue 1: Classification of Activity as Supply of Goods or Services The applicant, engaged in security printing for educational institutions, sought clarification on whether their printing activities (Question Papers, OMR Sheets, Answer Sheets, Marks Sheets, Certificates) constitute supply of goods or services. The Authority referred to Circular No. 11/11/2017-GST, which clarifies that if the printing activity gives the essential character to the product, it is classified as a supply of service. Since the applicant's printing activities provide the essential character to the printed products, they are classified as supply of services. Issue 2: Applicability of Exemption under Notification 12/2017-CT (Rate) The applicant inquired if their services qualify for exemption under Sr. No. 66 of Notification No. 12/2017-CT (Rate) as amended. The Authority confirmed that services related to the admission to, or conduct of examinations by educational institutions are exempt from GST. Since the applicant's services (printing of Question Papers, OMR Sheets, Answer Sheets, Marks Sheets, Certificates) are related to the conduct of examinations, they qualify for the exemption under Sr. No. 66 of Notification No. 12/2017-CT (Rate). Issue 3: Determination of Tax Liability The applicant also sought clarification on whether their activities should be treated as exempted goods under serial no. 119 of the exempted list or taxable under schedule I at serial no. 201. Given that the activities are classified as supply of services, the questions regarding the classification as supply of goods and related tax rates are not applicable. Ruling: a) The activity of printing (Question Papers, OMR Sheets, Answer Sheets, Marks Sheets, Certificates) is classified as supply of services. b) The benefit of serial no. 66 of Notification No. 12/2017-CTR dated 28.06.2017 is allowable for services related to the conduct of examinations by educational institutions. c) The classification as exempted goods under serial no. 119 is not applicable. d) The classification under schedule I at serial no. 201 is not applicable. e) The printing of stationery (Question Papers, Admit Cards, Answer Booklets, Certificates, etc.) on behalf of educational boards and universities constitutes a supply of services and qualifies for exemption under serial no. 66 of Notification No. 12/2017-CT (Rate). This ruling is valid within the jurisdiction of the Authority for Advance Ruling, Uttar Pradesh, and subject to the provisions under Section 103(2) of the CGST Act, 2017, until declared void under Section 104(1) of the Act.
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