2022 (7) TMI 501 - AAR - GST

Levy of GST or exempt supply? - educational institutions or not - 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 Serial Number 66 of Notification No.12/2017-CGST Rate dated 28-6-2017 as amended - HELD THAT - In the instant case, the educational institutions as referred to by the applicant for whom the supplies of the services of printing of examination related material are made/ intended to be made are Andhra University, Visakhapatnam, Satavahana University, Board of Secondary Education, Andhra Pradesh; Krishna University, Board of Higher Secondary Examination, Government of Kerala and Dr B R Ambedkar Open University. All these institutions invariably fall under the category of educational institution as they fulfil the criterion of 'institution providing services by way of,-(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force. Further, with reference to the services provided by the applicant, they are nothing But 'services relating to admission to, or conduct of examination by, such institution' falling under SI.No.66 of the said exemption notification of No.12/2017-CGST Rate dated 28.06.2017 as amended. Thus all the supplies are treated as exempt supply.

Summary

Issues Involved:
1. Classification of products and applicability of notification for considering the tax rate.
2. Whether printing of pre-examination items is an exempted supply of service.
3. Whether printing of post-examination items is an exempted supply of service.
4. Whether scanning and processing of examination results is an exempted supply of service.

Detailed Analysis:

1. Classification of Products and Applicability of Notification for Considering the Tax Rate:
The applicant, M/s. Universal Print Systems, is engaged in printing various items, including high-end security printing products. They approached the Authority for Advance Ruling to seek clarification on the classification of their products and the applicable tax rate under the GST regime. The relevant notification under consideration is Notification No.12/2017-CGST[Rate] dated 28-6-2017, which outlines exemptions for certain services provided to educational institutions.

2. Whether Printing of Pre-Examination Items is an Exempted Supply of Service:
The applicant provides printing services for pre-examination items like question papers, OMR sheets, and answer booklets, which are used by educational boards for conducting examinations. The applicant argued that these services should be exempt from GST under Serial Number 66 of Notification No.12/2017-CGST[Rate], which exempts services related to the conduct of examinations by educational institutions. The Authority concurred with the applicant’s interpretation, affirming that these services are indeed exempt from GST.

3. Whether Printing of Post-Examination Items is an Exempted Supply of Service:
The applicant also provides printing services for post-examination items such as marks cards, grade cards, and certificates. These items are used by educational boards to communicate examination results to students. The applicant contended that these services should also be exempt under the same notification, as they are related to the conduct of examinations. The Authority agreed, ruling that printing of post-examination items is exempt from GST.

4. Whether Scanning and Processing of Examination Results is an Exempted Supply of Service:
The applicant offers services for scanning and processing examination results. They argued that these services are integral to the conduct of examinations and should be exempt under the aforementioned notification. The Authority examined the relevant provisions and concurred with the applicant’s view, ruling that scanning and processing of examination results are exempt from GST.

Conclusion:
The Authority for Advance Ruling ruled affirmatively on all three queries raised by the applicant. The printing of pre-examination items, post-examination items, and the scanning and processing of examination results are all considered exempt supplies of service under Serial Number 66 of Notification No.12/2017-CGST[Rate] dated 28-6-2017, as amended. This exemption applies specifically to services related to the conduct of examinations provided to educational institutions as defined in the notification.