Supply of Printed Question Papers for Exams: Ruled as Service, Not Goods

The ruling determined that the supply of printed question papers for educational institutions conducting examinations is classified as a service rather than goods under the GST Act. The Applicant was exempted from paying GST on this service and was ineligible to claim input tax credit due to the nature of the transaction and ownership of the content. The service was classified under a specific SAC code, and the Applicant was confirmed to be exempt from GST under relevant notifications, with restrictions on availing credit for inputs used in providing printing services to educational institutions.

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Issues:
1. Whether GST is applicable on the supply of printed question papers for examinations conducted by educational institutionsRs.
2. If GST is applicable, at what rate should it be charged and under what HSN or SAC codeRs.
3. Whether credit of GST paid on inputs used for the supply can be availedRs.

Analysis:
1. The Applicant sought a ruling on the applicability of GST on supplying printed question papers for various examinations conducted by educational institutions. The Applicant also inquired about the rate of GST to be charged and the relevant HSN or SAC code. The Authority admitted the application for advance ruling under Sections 97(2)(a),(d)&(e) of the CGST/WBGST Acts, 2017.

2. The Applicant is registered under HSN 4901 under GST and provides printing services for question papers to educational institutions. The Applicant's customers, being government organizations, do not pay GST on the services, leading to the inability to claim credit on GST paid for inputs. The nature of the services provided and the ownership of the printed question papers were discussed.

3. The judgment focused on determining whether the printed question papers are considered as "goods" or "services" under the GST Act. The definition of goods and services under Section 2 of the Act was analyzed to ascertain the classification. The ruling emphasized the distinction between goods and services in the context of supplying printed question papers.

4. Section 7 of the GST Act outlines the conditions for the scope of supply for goods and services. The applicability of Schedule III and government notifications in determining the classification of supply was discussed. The absence of specific notifications regarding the supply of question papers was highlighted.

5. The ruling clarified that the supply of question papers does not fall under the category of goods as per the GST Act. The nature of the transaction and the ownership of the content were considered to determine the classification as a service of printing rather than a supply of goods.

6. The Applicant's procurement of inputs for printing question papers and the specific requirements set by educational boards were examined. The classification of printing services under the GST Tariff-Services was discussed, emphasizing the applicability of relevant notifications for taxation.

7. The judgment referred to Sections 8 and 9 of the GST Tariff-Services to determine the appropriate classification for the printing services provided to educational institutions. The taxability of services related to the conduct of examinations was analyzed under specific headings.

8. The GST rates for services, including exemptions, were governed by relevant notifications. The exemption for services provided to educational institutions related to the conduct of examinations was elaborated, citing specific entries and explanations from the notifications.

9. The ruling concluded that the Applicant is not liable to pay tax on the service of printing question papers for educational institutions conducting examinations. The eligibility for input tax credit was discussed in relation to exempt supplies under the GST Act, highlighting the restrictions on availing credit.

10. The final ruling classified the service of printing question papers for educational institutions under a specific SAC code and confirmed the exemption from GST under the relevant notification. The Applicant was deemed ineligible for claiming credit on GST paid for inputs used in the provision of printing services to educational institutions.

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