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TMI Blog2018 (10) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... books? or It should be covered by Schedule I at Sr. No. 201 liable to tax at 2.5% under “Brochures, leaflets and similar printed matter, whether or not in single sheets”? Supply of goods or services? - Held that:- The Government of India, Ministry of Finance, Department of Revenue, Tax Research Unit, vide Circular No. 11/11/2017-GST dated 20, 10.2017, has issued clarification on taxability of printing contracts - The manuscript material for printing the Question Papers relating to the examinations is supplied to the applicant by the Education Boards / Educational Institutes. The scope of work of the applicant relates to compose, typeset, print, pack, transport, unload and supply sealed Question Papers to the Education Board / Educational Institutes. As the usage rights of the manuscript material of Question Papers (intangible inputs) are owned by the Education Boards / Educational Institutes and the physical inputs used for printing belong to the applicant, supply of printing is the principal supply in this case and the same would constitute supply of service falling under heading 9989 of the scheme of classification of services. Applicability of Sr. No. 66 of Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Edutest Solutions Private Limited to service recipients other than educational institutions by way of printing of question papers would be covered by Sr.No. 27(i) of Notification No: 11/20.17-Central Tax (Rate), as-amended, and Notification No. 11/2017-State Tax (Rate), as amended. As the activity of printing of question papers by M/s. Edutest Solutions Private Limited is held to be activity of supply of service, the question of appropriate classification as ‘goods’ and applicable rate on such ‘goods’ does not arise. - GUJ/GAAR/R/2018/16 In Application No. AAR/SGST & CGST/2017/AR/34 - - - Dated:- 23-8-2018 - SHRI R.B. MANKODI AND G.C. JAIN MEMBER Present for the Applicant: Shri Priyam R. Shah The applicant M/s. Edutest Solutions Private Limited (previously known as Confisec Private Limited) is engaged in business of confidential printing of educational test papers, which requires team of highly experienced and talented persons and maintenance of top secrecy, accuracy and timely delivery of the material is essential part of work. The applicant is doing printing of educational test papers for Secondary and Higher Secondary Education Boards of various states and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to admission to, or conduct of examination by, such institution, upto higher secondary . It is further submitted that the word upto higher secondary have been omitted at aforesaid Sr. No. 66 vide Notification No. 2/2018-Central Tax (Rate) dated 25.01.2018. The applicant submitted that all services which it is providing to educational institution as defined at Sr. No. (y) of definition provided in Notification No. 12/2017- Central Tax (Rate) are exempt services under GST law. 5. The applicant also referred to Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate), as amended vide Notification No. 31/2017-Central Tax (Rate), 6. The applicant raised the following questions for advance ruling - (i) Whether activity of printing of question papers on behalf of educational institutions can be classified as activity of supply of goods or supply of services. (ii) If it is supply of services, referring to Sr. No. 27 of Notification 11/2017-CTR dtd : 28.06.2017 as amended by Notification 31/2017-CTR dtd.: 13.10.2017, then benefit of Sr. No. 66 of Notification 12/2017-CTR dtd.. 28.06.2017 is allowable, as amended by Notification No. 2/2017-CTR of 25.01.2018; or (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inted goods, are composite supplies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. 3. Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax ACI as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. 4. In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong 10 the printer, supply of printing [of the content supplied by [he recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. 10.2 The manuscript material for printing the Question Papers relating to the examinations is supplied to the applicant by the Education Boards / Educational Institutes. The scope of work of the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n amended vide clause (o) of Notification No. 2/2018-CentraI Tax (Rate) dated After such amendment, the said Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) reads as follows - (1) (2) (3) (4) (5) Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Conditions 66 Heading 9992 Services provided - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee;] (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational institution; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Vs Union of India 1988 (36) ELT 201 (SC) = 1988 (2) TMI 61 - SUPREME COURT OF INDIA , interpreting the expression in relation to: 48. The expression in relation to (so also pertaining to), is a very broad expression which pre-supposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context, see State Wakf Board v. Abdul Aziz (A.I.R. 1968 Madras 79, 81 = 1966 (3) TMI 84 - MADRAS HIGH COURT , paragraphs 8 and 10, following and approving Nitai Charan Bagchi v. Suresh Chandra Paul (66 C.W.N. 767) = 1961 (2) TMI 70 - CALCUTTA HIGH COURT , Shyam Lal v. M. Shayamlal (A.I.R. 1933 All. 649) = 1933 (4) TMI 15 - ALLAHABAD HIGH COURT , and 76 Corpus Juris Secundum 621. Assuming that the investments in shares and in lands do not form part of the undertakings but are different subject matters, even then these would be brought within the purview of the vesting by reason of the above expressions. In this connection reference may be made to 76 Corpus Juris Secundum at pages 620 and 621 where it is stated that the term relate is also defined as meaning to bring into associat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate) dated 22.08.2017 and 31/2017-Central Tax (Rate) dated 13.10.2017. After such amendment, the said Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate) reads as follows - Sl.No. Chapter, Section or Heading Description of Services Rate (per cent.) Conditions (1) (2) (3) (4) (5) 27 Heading 9989 (i) Services by way of printing of all goods falling under Chapter 48 or 49 [including newspapers books (including Braille books), journals and periodicals], which attract CGST @ 6 per cent. or 2.5 per cent. or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer. 6 - (ii) Other manufacturing services; publishing, printing and reproduction services; materials recovery services, other than (i) above. 9 - 14.2 The service of printing of question paper, supplied by the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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