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2020 (3) TMI 1088 - AAR - GSTExemption from GST - Printing and supply of Text books and Printed Materials, Karnataka Kaipidi, Annual Reports, Receipt Books, Measurement Books and Log books to Government Departments not registered under GST Act and Government Departments registered under GST Act - Printing supply of Answer booklets, Visiting cards, Letter heads, Forms, Covers, File wrappers, invitation cards, Scribbling pads, Rubber stamps to Government Departments not registered under GST Act and Government Departments registered under GST Act - Printing and supply of Annual Reports and Receipt Books to Autonomous bodies - Supply of Log Books to Autonomous bodies - Printing supply of Text books/ Karnataka kaipidis/Karnataka gazettes Economic Survey of Government of Karnataka to Public recognized book stalls - Supply of waste paper to public - Supply of old Machinery as Scarp to public - Supply of stationary Articles to Government Departments not registered under GST Act and Government Departments registered under GST Act - Transportation service received by applicant from GTA to Applicant is the recipient - Transportation service received by applicant from service provider other than GTA and courier agency to Applicant is the recipient - Printing and supply of Law reports to Honourable High Court of Karnataka - Issue of NOC to public - Printing and supply of Bus tickets to BMTC. Supply to Various Departments of Government of Karnataka - whether the instant activity of printing and supply of text books printed material / Annual Reports / receipt books/ measurement books log books to other departments of same Government of Karnataka, who have not obtained separate registration under the GST Act, amounts to supply in terms of Section 7(1)(a) of the CGST Act 2017 or not? - HELD THAT - The applicant claims exemption for the above said activity under entry No.8 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. This entry exempts only the services provided by the State Government to another State Government and hence the said entry is not relevant to the instant issue. Supply of Goods to Various Departments of Government of Karnataka - supply of printed material i.e. answer sheets/visiting cards/ letter heads/ forms/covers/file wrappers/invitation cards/ scribbling pads / rubber stamps; content is provided by any of the Department of Government of Karnataka; physical inputs including paper belong to the applicant - HELD THAT - The impugned activity of printing and supply of Answer sheets/visiting cards/ letter heads/ forms/covers/file wrappers/invitation cards/ scribbling pads / rubber stamps to other Departments of same Government of Karnataka who have not obtained separate registration under the GST Act does not qualify as supply in terms of Section 7(1)(a) of the CGST Act 2017 - However, if the said supply is done to the other Departments of Government of Karnataka who have obtained separate registration under the GST Act, said transaction qualify as supply in terms of Section 7(1)(a) of the CGST Act 2017 and liable to tax under GST. Supply of Service to Autonomous bodies - printing supply of Annual Reports / Receipt Books respectively, to autonomous bodies i.e. BRTS Company, Hubli-Dharwad Karnataka Electricity Regulatory Commission, Chamundeshwari Electricity Supply Company, Power Company of Karnataka Limited, BESCOM / HESCOM / MESCOM / KPTCL, Udupi / Bellary Nagarabhivrudi Pradhikara, Higher Education Council; content is provided by autonomous bodies - HELD THAT - The impugned supply is that of services, classified under SAC 9989 and attracts 12% GST, in terms of Sl.No.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017. Supply of Goods to Autonomous bodies - Printing supply of Log Books to autonomous bodies i.e. Karnataka Kolageri Abhivruddi mandali, Karnataka State Aids Prevention Society, Karnataka Vasathi Shikshana Samsthe, Karnataka Sarvajanika Arogya Samsthe - HELD THAT - In the instant case, the applicant is engaged in supply of Log Books to autonomous bodies, where the content is not provided by the recipient but provided by any of the department of Government of Karnataka. The applicant supplies the Log Books itself out of the readily available stock and hence supply of the said items amounts to supply of goods - Log book is nothing but a register to maintain the details of movement of the vehicle; merits classification under Chapter Heading 4820 and gets covered under entry No.154 of Schedule III to Notification 01/2017-Central Tax (Rate) dated 28.06.2017 and thereby attracting GST A 18%. Supply to Public Recognised Book Stalls - printing supply of Text books/ Karnataka kaipidis/Karnataka gazettes Economic Survey of Government of Karnataka to Public recognised book stalls - HELD THAT - All the items in the instant issue, i.e. Text books/ Karnataka kaipidis/Karnataka gazettes Economic Survey of Government of Karnataka, are nothing but printed books and merits classification under Chapter Heading 4901. Entry No.119 of Notification 02/2017-Central Tax (Rate) dated 28.06.2017 exempts the printed books i.e. goods falling under heading 4901. The impugned items are squarely covered under the said entry and hence are exempted. Supply of waste paper etc. - supply of waste paper, old sweepings, old obsolete forms and books, unusable articles as waste - HELD THAT - In the instant case it could be inferred from the question that the applicant seeks advance ruling with regard to rate of GST applicable on the sale/ supply of waste paper. Waste scrap paper is classified under heading 4707 and attract 5% GST. Supply / sale of old machinery as scrap - supply of old machinery as scrap - HELD THAT - In the instant case, the old printing machinery of ferrous material is intended to be sold/ supplied as scrap and the said old machinery, if sold as scrap, is considered as Ferrous Waste and Scrap. Thus the rate of GST applicable on the said Ferrous Waste and Scrap is 18% in terms of the aforesaid notification/entry number. Supply of Stationery articles to Government Departments - pure agent services or not - HELD THAT - In the instant case the applicant, being the part of Government of Karnataka, procures the required stationery and distributes the same to various departments, but does not procure any other services or goods or both for the supply / distribution of the stationery items and hence the applicant does not qualify to be a pure agent - the impugned activity of supply of stationary items to other Departments of same Government of Karnataka who have not obtained separate registration under the GST Act does not qualify as supply in terms of Section 7(1) (a) of the CGST Act 2017, as explained at para 10 (a) supra. However, if supply of stationary items is done to the other Departments of Government of Karnataka who have obtained separate registration under the GST Act, then the transaction qualify as supply in terms of Section 7(1)(a) of the CGST Act 2017 and liable to tax under GST. Taxability of Transportation charges paid by the Applicant - whether they are liable to pay GST on the transportation charges paid to the service provider, in relation to transportation of the text books other printed forms/PUC answer booklets? - The first situation i.e. the service provider is the GTA and also the applicant is receiver of the service of Transport of Goods by Road - HELD THAT - In this case the applicant, being the receiver of the service, if falls under the specified 7 categories mentioned at column 4 of the Notification No. 13/2017 Central Tax (Rate) dated 28-06-2017, then the applicant is liable to pay GST on the service of GTA, under Reverse Charge Mechanism, in terms of the said Notification. The applicable rate of GST, on the said service is as per item (iii) of entry no 9 of the notification 11/2017 Central tax (Rate) dated 28/06/2017 as amended by the notification 20/2017 Central tax (Rate) dated 22/08/2017. The applicant, in the second situation, if receives the service of transportation of goods the text books other printed forms/PUC answer booklets by road from other than the GTA and Courier agency, such transportation service is exempted from payment of GST as per entry no. 18 of the notification 12/2017 Central Tax (Rate) dated 28/06/2017. Whether they can deduct TDS on the transportation charges paid? - HELD THAT - The applicant has to pay GST, under RCM, in the first situation and not required pay in the second situation. Therefore in either of the situation the applicant not paying the tax (GST) to the provider of the service and hence the question of deduction of TDS on the transportation charges paid does not arise. Printing Supply of Indian Law Reports to the Hon ble High Court of Karnataka - HELD THAT - In the instant case the applicant being a Government press, established by the Government of Karnataka, under the control and supervision of Primary Secondary Education Secretariat and hence becomes part of Government of Karnataka. Applicant printing supply the Indian Law Reports to the Hon ble High Court of Karnataka, Bengaluru; content is provided by Hon ble High Court of Karnataka; physical inputs including paper belong to the applicant. Therefore, in the instant activity, the principal supply is that of supply of printing service and transaction becomes supply of service - Therefore from the said entry it is observed that any service provided by the Government of Karnataka to business entity is excluded from exemption - thus, the printing supply of Indian Law Reports to the Hon ble High Court of Karnataka, Bengalure by the applicant is exempted om GST in terms of entry no 6 of the notification 12/2017 Central Tax (Rate) dated 28/06/2017. Issuance of No Objection Certificate (NOC) to private persons, for change of name - HELD THAT - The applicant being the Department of Government of Karnataka, issues the No Objection Certificate to the private individuals and collects an amount of ₹ 100/-. This activity of the applicant amounts to provision of service by the State Government to an individual. The services provided by the State Government, where the consideration for such service does not exceed five thousand rupees are exempted from GST, in terms of entry number 9 of the Notification No.12/2017 Central tax (Rate) dated 28/06/2017. Thus impugned activity of issuing NOC to the private individuals for the consideration of ₹ 100/- is exempted from GST. Printing Supply of Bus Tickets to BMTC, Bengaluru - HELD THAT - In the instant case the applicant is involved in printing supply of bus tickets; content is provided by the BMTC (recipient); physical inputs including paper belong to the applicant and hence the impugned activity amounts to supply of service, in terms of para 4 of the circular supra. The impugned supply is that of services, classified under SAC 9989 and attracts 12% GST, in terms of Sl.No.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017.
Issues Involved:
1. Taxability of printing and supply of various materials to Government Departments and Autonomous Bodies. 2. Exemption eligibility under specific GST notifications. 3. Classification of supplies as goods or services. 4. Taxability of waste paper and old machinery. 5. Tax implications of transportation charges. 6. Issuance of No Objection Certificates (NOCs). Detailed Analysis: Issue 1: Taxability of Printing and Supply to Government Departments - Service to Unregistered Government Departments: The supply of printed materials such as textbooks, annual reports, and log books to unregistered Government Departments does not qualify as a supply under Section 7(1)(a) of the CGST Act, 2017, and is thus exempt. - Service to Registered Government Departments: When supplied to registered Government Departments, these transactions are taxable under SAC 9989 at 12% GST (6% CGST + 6% SGST). Issue 2: Taxability of Printing and Supply to Autonomous Bodies - Annual Reports and Receipt Books: These are classified as services under SAC 9989 and are taxable at 12% GST when supplied to autonomous bodies. - Log Books: Classified under HSN 4820, these are considered goods and taxable at 18% GST (9% CGST + 9% SGST). Issue 3: Supply to Public and Recognized Book Stalls - Textbooks, Karnataka Kaipidis, Karnataka Gazettes, and Economic Survey: These items are classified under HSN 4901 as printed books and are exempt from GST under Entry No. 119 of Notification 02/2017. Issue 4: Waste Paper and Old Machinery - Waste Paper: Classified under HSN 4707, taxable at 5% GST (2.5% CGST + 2.5% SGST). - Old Machinery as Scrap: Classified under HSN 7204 as ferrous waste and scrap, taxable at 18% GST (9% CGST + 9% SGST). Issue 5: Transportation Charges - From GTA: If the transportation service is provided by a Goods Transport Agency (GTA), the applicant is liable to pay GST under Reverse Charge Mechanism at 5% GST. - From Non-GTA: If the service provider is not a GTA or courier agency, the transportation service is exempt from GST under Entry No. 18 of Notification 12/2017. Issue 6: Issuance of No Objection Certificates (NOCs) - NOCs for Change of Name: The issuance of NOCs to private individuals for a fee of ?100 is exempt from GST under Entry No. 9 of Notification No. 12/2017 as the consideration does not exceed ?5,000. Summary of Rulings: 1. Printing and Supply to Government Departments: - Unregistered Departments: Exempt. - Registered Departments: Taxable at 12% GST. 2. Printing and Supply to Autonomous Bodies: - Annual Reports and Receipt Books: Taxable at 12% GST. - Log Books: Taxable at 18% GST. 3. Supply to Public and Recognized Book Stalls: Exempt. 4. Waste Paper: Taxable at 5% GST. 5. Old Machinery as Scrap: Taxable at 18% GST. 6. Transportation Charges: - From GTA: Taxable at 5% GST under RCM. - From Non-GTA: Exempt. 7. Issuance of NOCs: Exempt. This analysis ensures comprehensive coverage of the issues while retaining the legal terminology and significant phrases from the original judgment.
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