Printing question papers: GST exemption for educational institutions; 12% GST for non-educational.

The court classified the activity of printing question papers as a supply of service under heading 9989. Services provided to educational institutions for printing question papers were deemed exempt from GST under Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate). Services provided to non-educational institutions for printing question papers fell under Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate) and attracted a GST rate of 12%.

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Issues Involved:
1. Classification of the activity of printing question papers as supply of goods or services.
2. Applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) for services provided to educational institutions.
3. Applicability of Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate) for services provided to non-educational institutions.

Detailed Analysis:

1. Classification of the Activity of Printing Question Papers:
The primary issue is whether the activity of printing question papers by the applicant should be treated as a supply of goods or services. The judgment refers to Circular No. 11/11/2017-GST, which clarifies that the principal supply determines the classification. Since the manuscript material for the question papers is provided by educational institutions and the physical inputs belong to the applicant, the principal supply is the printing service. Therefore, this activity constitutes a supply of service under heading 9989 of the classification of services.

2. Applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate):
The next issue is whether the service provided by the applicant to educational institutions falls under Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate), which exempts certain educational services from GST. The notification includes services relating to the conduct of examinations by educational institutions. The phrase "relating to" broadens the scope, as established by the Bombay High Court in Coca Cola India Pvt. Ltd. vs. Commissioner of Central Excise, Pune-III. Thus, the printing of question papers for educational institutions is considered a service related to the conduct of examinations and is exempt from GST under Sr. No. 66.

3. Applicability of Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate):
For services provided to non-educational institutions, the judgment refers to Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate), which covers printing services. The service of printing question papers supplied to entities other than educational institutions falls under Sr. No. 27(i) and attracts a GST rate of 12% (6% CGST + 6% SGST/IGST).

Ruling:
1. The activity of printing question papers by the applicant is classified as a supply of service under heading 9989.
2. Services provided to educational institutions for printing question papers for examinations are covered by Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) and are exempt from GST.
3. Services provided to non-educational institutions for printing question papers are covered by Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate) and attract a GST rate of 12%.
4. Since the activity is classified as a supply of service, the question of classifying it as goods and determining the applicable rate for goods does not arise.

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