9911796707
TMI Blog2025 (3) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... s the content to be printed on them is given by the latter to the applicant. The supply of Printed materials as required by the institution cannot be in toto categorised as supply of goods to the educational institutes, as this is not a ready-made printed material 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 - The supply of papers is an integral part of the composite supply, without which the contents cannot be printed. But the same cannot be called as principal supply as the purpose for which the educational institutes contracted with applicant is not for buying papers but for the printing services. The content to be printed is based on the specifications given by the educational institutes and the applicant has no role in deciding the same. Therefore supply of printing of the content supplied by the recipient of supply] is the principal supply and the same is clarified by Circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial No. 66 of N/N. 12/2017-CT(Rate) dated 28-06-2017 as amended by N/N. 02/2018-CT(Rate) dated 25-01-2018. X X X X Extracts X X X X X X X X Extracts X X X X ..... age in view of the security features. Hence, the said service particularly in cases where the design/data/pattern is provided by the customer is recognized as service. * The applicant has been undertaking the job of printing of question papers for different universities of various states and charging GST on invoices raised on such services. * All their clients are primarily Government recognized/based both Central and State Governments. * The content to be printed are provided by University/ College in respect of all the items listed above. * The confidentiality of printing college OMR sheets for various exams is typically a crucial aspect to ensure the integrity and security of the examination process. Some of the general practices followed are, (i) OMR sheets are printed in highly secure and controlled printing facilities and access to these facilities are restricted. (ii) A non-disclosure agreement if signed between printing agencies and personal involved in printing process to prevent lekeage of information. (iii) Access to the design layout and content is restricted to a limited number of authorized personnel. (iv) Advanced printing technologies such as incorpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f examination and communication of results. * The said activity acts as a last leg towards completion of the activity of conducting the examination process by the Educational Institutions. The exemption notification is applicable as the services provided by the applicant to the Educational Institution by way of post-examination materials will not be liable to GST. * The above mentioned services are normally not carried out by the educational institution by themselves but outsourced to other service providers due to lack of infrastructure for printing, administrative convenience, confidentiality, volume etc. * When such services are procured by the educational institution, they tantamount to the services relating to conduct of examination which will fall within the ambit of exemption outlined under serial No. 66 of Notification No. 12/2017-CGST(Rate) dated 28-06-2017 as amended by 02-08-2018-CT(Rate) dated 25-01-2018. Hence the notification has to be applied to the applicant's case. * The applicant further draws attention to the following decisions of the Advance Ruling Authorities in other states, wherein the said activity is considered as service and exempted from GST. * ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interstate transactions as per Notification No. 08/2017-IGST(Rate) dated 28-06-2017. Hence, the transactions entered into with interstate educational institutions are eligible for this benefit. * OMR (Optical Mark Reading) sheets for all type of exams: The applicant is seeking advance ruling only for the supply made by them to recognized universities under laws of the land and not for all supplies of OMR to others. They further confirm that the meaning for all types of exams is purely restricted to exams conducted by the university recognized by Indian Laws. * SAC/HSN category and description: The applicant have mentioned computer stationery under SAC/HSN category and has given detailed description of the product in the invoice particulars; that they have selected the options as per SAC/HSN available in the category; that however they have given clear description in the particulars for clear understanding and nature of service provided. Accordingly, they informed that there is not discrepancy in the nature of service provided by them and the categories mentioned. 7. COMMENTS OFFERED BY JOINT COMMISSIONER, CHENNAI SOUTH, CGST After discussing query raised by the applicant, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icability of the exemption for the services classified at Serial No. 66 (b) (iv) of Notification No. 12/2017, dated 28-6-2017 as services provided to Educational Institution, relating to admission to, or conduct of examination, i.e printing of pre-examination and post-examination related documents and scanning & processing of results of the examination. 9.2. In this connection, the Central Board of Indirect Taxes had issued a Circular No. 151/07/2021-GST CBIC-190354/36/2021, dated 17-6-2021 clarifying whether the activities falling under Serial No. 66 of Notification No. 12/2017 are eligible for exemption. 9.3. Vide Sl. No. 66 of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017 as amended by Notification No. 02/2018-CT (Rate) dated 25-01-2018, read with the definition of 2 (y) of the said notification it was clarified that GST is exempt on input services relating to admission to, or conduct of examination, such as online testing service, result publication, printing of notification for examination, admit card and questions papers etc., when provided to such Boards under S. No. 66 (b) (iv) of Notification No. 12/2017-CT(Rate). 9.4. As seen from the averment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s goods and services i.e. papers and printing services. The supply of papers is an integral part of the composite supply, without which the contents cannot be printed. But the same cannot be called as principal supply as the purpose for which the educational institutes contracted with applicant is not for buying papers but for the printing services. The content to be printed is based on the specifications given by the educational institutes and the applicant has no role in deciding the same. Therefore supply of printing of the content supplied by the recipient of supply] is the principal supply and the same is clarified by Circular No. 11/11/2017-GST, dated 20-10-2017. 10. The next issue to be examined is applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017, as amended vide clause (o) of Notification No. 2/2018-Central Tax (Rate), dated 25-1-2018, read with Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, as amended,- Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 66 Heading 9992 Services provided - (a) by an educational institution to its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der 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 - 12. 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% (CGST 6% + SGST 6% or IGST 12%). 13. In this connection, it is to inform that the Central Board of Excise and Customs has issued a Circular No. 151/07/2021-GST, dated 17-6-2021 (F. No. CBIC-190354/36/2021) and clarified that activities falling under Serial No. 66 of Notification No. 12/2017 are exempted. The relevant portion is reproduced below - "3.1 The following services supplied by an educational institution are exempt from GST vide Sl. No. 66 of the Notification No. 12/2017-Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on under S. No. 66 (b) (iv) of Notification No. 12/2017-CT(Rate) dated 28-06-2017 is eligible 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 dated 17-6-2021 while dealing with the issue of supply of various services by National and State Boards. 16. In view of the foregoing, the ruling is given as under: Ruling (i) Services of printing of pre-examination items like hall tickets, question paper, OMR sheets, answer booklet provided to Educational Institutions' for conducting examination shall be treated as exempted supply in terms of serial No. 66 of Notification No. 12/2017-CT(Rate) dated 28-06-2017 as amended by Notification No. 02/2018-CT(Rate) dated 25-01-2018. (ii) Services of printing of post-examination items like mark sheets, Degree Certificates, grade sheets, rank sheets, rank cards, certificates to educational boards, after scanning the OMR sheets and processing of data provided to 'Educational Institutions' in relation to conduct of examination shall also be treated as exempted supply in terms of serial No. 66 of Notification No. 12/2017-CT(Rate) dated 28-06-2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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